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THIRTY-SECOND DAY

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MORNING SESSION

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Senate Chamber, Olympia, Thursday, February 12, 2004

      The Senate was called to order at 9:00 a.m. by President Owen. The Secretary called the roll and announced to the President that all Senators were present.

      The Sergeant at Arms Color Guard consisting of Pages Natasha Palnikova and Greta Stickney presented the Colors. Reverend Leon Meyer, pastor of the Calvary Baptist Church of Burlington, offered the prayer.


MOTION


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


      There being no objection, the Senate advanced to the fourth order of business


MESSAGES FROM THE HOUSE


February 11, 2004


MR. PRESIDENT:

The House has passed the following bills:

      SUBSTITUTE HOUSE BILL NO. 1021,

      SUBSTITUTE HOUSE BILL NO. 1227,

      SUBSTITUTE HOUSE BILL NO. 1257,

      SUBSTITUTE HOUSE BILL NO. 1258,

      HOUSE BILL NO. 1580,

      HOUSE BILL NO. 2811,

      SUBSTITUTE HOUSE BILL NO. 2984,

      SUBSTITUTE HOUSE JOINT MEMORIAL NO. 4032,

and the same are herewith transmitted.


RICHARD NAFZIGER, Chief Clerk


February 11, 2004


MR. PRESIDENT:

The House has passed the following bills:

      HOUSE BILL NO. 1895,

      SUBSTITUTE HOUSE BILL NO. 2234,

      HOUSE BILL NO. 2244,

      SUBSTITUTE HOUSE BILL NO. 2307,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 2354,

      SUBSTITUTE HOUSE BILL NO. 2367,

      HOUSE BILL NO. 2377,

      HOUSE BILL NO. 2387,

      HOUSE BILL N O. 2395,

      HOUSE BILL NO. 2415,

      SUBSTITUTE HOUSE BILL NO. 2433,

      HOUSE BILL NO. 2453,

      SUBSTITUTE HOUSE BILL NO. 2455,

      SUBSTITUTE HOUSE BILL NO. 2504,

      SUBSTITUTE HOUSE BILL NO. 2506,

      SUBSTITUTE HOUSE BILL NO. 2538,

      HOUSE BILL NO. 2547,

      HOUSE BILL NO. 2598,

      HOUSE BILL NO. 2632,

      HOUSE BILL NO. 2683

and the same are herewith transmitted.


RICHARD NAFZIGER, Chief Clerk


February 11, 2004


MR. PRESIDENT:

The House has passed the following bills:

      HOUSE BILL NO. 2534,

      HOUSE BILL NO. 2535,

      HOUSE BILL NO. 2536,

      HOUSE BILL NO. 2542,

      SUBSTITUTE HOUSE BILL NO. 2575,

      HOUSE BILL NO. 2583,

      SUBSTITUTE HOUSE BILL NO. 2585,

      HOUSE BILL NO. 2601,

      HOUSE BILL NO. 2615,

      SUBSTITUTE HOUSE BILL NO. 2685,

      SUBSTITUTE HOUSE BILL NO. 2686,

      HOUSE BILL NO. 2688,

      HOUSE BILL NO. 2703,

      HOUSE BILL NO. 2742,

      HOUSE BILL NO. 2743,

      HOUSE BILL NO. 2831,

      HOUSE BILL NO. 2859,

      HOUSE BILL NO. 2867,

      SUBSTITUTE HOUSE BILL NO. 2878,

      SUBSTITUTE HOUSE BILL NO. 2985,

      SUBSTITUTE HOUSE JOINT MEMORIAL NO. 4036,

and the same are herewith transmitted.


RICHARD NAFZIGER, Chief Clerk


February 11, 2004


MR. PRESIDENT:

The House has passed the following bills:

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1569,

      SUBSTITUTE HOUSE BILL NO. 1594,

      ENGROSSED HOUSE BILL NO. 1677,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1879,

      HOUSE BILL NO. 2100,

      HOUSE BILL NO. 2301,

      HOUSE BILL NO. 2332,

      HOUSE BILL NO. 2345,

      SUBSTITUTE HOUSE BILL NO. 2366,

      SUBSTITUTE HOUSE BILL NO. 2414,

      HOUSE BILL NO. 2418,

      HOUSE BILL NO. 2419,

      HOUSE BILL NO. 2420,

      HOUSE BILL NO. 2438,

      HOUSE BILL NO. 2450,

      HOUSE BILL NO. 2454,

      HOUSE BILL NO. 2484,

      HOUSE BILL NO. 2490,

      HOUSE BILL NO. 2505,

      HOUSE BILL NO. 2509,

and the same are herewith transmitted.


RICHARD NAFZIGER, Chief Clerk


MOTION


      There being no objection, the Senate advanced to the fifth order of business.


INTRODUCTIONS AND FIRST READING OF HOUSE BILLS

 

2EHB 1645        by Representatives Kessler, Skinner, Edwards, Lantz, Moeller, Kirby, Kenney, Lovick, O'Brien, Kagi, G. Simpson, McCoy, Cody, Ruderman, Flannigan, Upthegrove, Pettigrew, Clibborn, McDermott, Dickerson, Hudgins, Schual-Berke, Santos, Conway, Sullivan, Morrell and Darneille

 

Addressing protection of victims of domestic violence, sexual assault, or stalking in the rental of housing.

 

Referred to Committee on Financial Services, Insurance & Housing.

 

ESHB 1949        by House Committee on Juvenile Justice & Family Law (originally sponsored by Representatives Nixon and Wood)

 

Providing financial assistance for victims of domestic violence seeking protection orders.

 

Referred to Committee on Judiciary.

 

SHB 2392          by House Committee on Juvenile Justice & Family Law (originally sponsored by Representatives Lantz, Darneille, Carrell, O'Brien, Romero, Lovick, Kenney, Flannigan, Upthegrove, Kagi, Hunt, Rockefeller, McCoy, Dickerson, Haigh, McMahan, Morrell, Bush, Clibborn, Delvin, Campbell, G. Simpson, Ruderman, Jarrett, Chase, Schual-Berke, Hudgins, Kessler, Woods, Moeller, Talcott and McDonald)

 

Requiring law enforcement agencies to adopt policies concerning domestic violence by sworn employees.

 

Referred to Committee on Judiciary.

 

SHB 2397          by House Committee on Juvenile Justice & Family Law (originally sponsored by Representatives Upthegrove, Dickerson, Lantz, Clibborn, Delvin, Chase, Schual-Berke, Miloscia, Hudgins, Kessler and Morrell)

 

Imposing penalties against convicted domestic violence offenders to pay for domestic violence programs.

 

Referred to Committee on Judiciary.

 

HB 2398            by Representatives Upthegrove, Delvin, Dickerson, Chase, Schual-Berke, Hudgins, Kessler and Morrell

 

Revising provisions relating to providing notice of a modification or termination of a protection order.

 

Referred to Committee on Judiciary.

 

HB 2473            by Representatives Clibborn, Woods, Lantz, Jarrett, Darneille, Bailey, Hunt, Lovick, Shabro, Kenney, Chase, Tom and Schual-Berke

 

Restricting possession of weapons in courthouse buildings.

 

Referred to Committee on Judiciary.


MOTION


      On motion of Senator Esser, all measures listed on the Introduction and First Reading report were referred to the committees as designated.


MOTION


      On motion of Senator Esser, the Senate advanced to the eighth order of business.



MOTION


      On motion of Senator Franklin, the following resolution was adopted:


SENATE RESOLUTION NO. 8710


By Senators Franklin, Finkbeiner, Kohl-Welles, Regala, Rasmussen, McAuliffe, Carlson, Johnson, Fraser and Spanel


      WHEREAS, May 17, 2004, marks the fifty-year anniversary of the Supreme Court case Brown v. Board of Education of Topeka; and

      WHEREAS, The Supreme Court ruled against the Topeka Board of Education declaring that "separate educational facilities are inherently unequal" and violate the equal protection clause under the Fourteenth Amendment. In so doing, the court decision overturned the precedent determined in 1896 by Plessy v. Ferguson; and

      WHEREAS, Linda Brown, a young African-American student, was forced to ride a bus five miles to school when there was an adequate facility only four blocks from her home; and

      WHEREAS, Brown v. Board of Education aimed to prohibit federally sanctioned racial segregation in public schools; and

      WHEREAS, Thurgood Marshall, the lead attorney for Brown, fought for equality for African-American school children; and

      WHEREAS, He believed segregation "generates a feeling of inferiority as to their status in the community that may affect their hearts and minds in a way unlikely to ever be undone"; and

      WHEREAS, Since May 17, 1954, the citizens of the United States of America have broken down the barriers of segregation in educational facilities, and while there are still inequalities in the distribution of educational resources, we must continue to seek equal opportunities for all of our children;

      NOW, THEREFORE, BE IT RESOLVED, That the Senate, on behalf of the people of our state, does, in recognition of the Supreme Court ruling in Brown v. Board of Education, remember the significance of integrated schools where children of all backgrounds can learn with and from each other in an interracial and multicultural community; and

      BE IT FURTHER RESOLVED, That we honor the people who suffered from the injustice of segregation and the people who were dedicated to fairness, equality, and the integration of all educational facilities; and

      BE IT FURTHER RESOLVED, That a copy of this resolution be immediately transmitted by the Secretary of the Senate to the Office of the Superintendent of Public Instruction.

      Senators Franklin, Carlson, Kohl-Welles, McAuliffe, Johnson and Shin spoke in favor of adoption of the resolution.

      The President declared the question before the Senate to be the adoption of Senate Resolution No. 8710.

      The motion by Senator Franklin carried and the resolution was adopted by voice vote.


MOTION


      On motion of Senator Eide, Senator Prentice was excused.


MOTION


      On motion of Senator Esser, the Senate reverted to the sixth order of business.


SECOND READING


     SENATE BILL NO. 6279, by Senators Murray, Parlette, Carlson, Roach, Kohl-Welles and Rasmussen; by request of LEOFF Plan 2 Retirement Board

 

Providing benefits to certain disabled members of the law enforcement officers' and fire fighters' retirement system plan 2.


      The bill was read the second time.


MOTION


      On motion of Senator Zarelli, the rules were suspended, Senate Bill No. 6279 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senator Murray spoke in favor of passage of the bill.

      The President declared the question before the Senate to be the final passage of Senate Bill No. 6279.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 6279 and the bill passed the Senate by the following vote: Yeas, 48; Nays, 0; Absent, 0; Excused, 1.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 48.

     Excused: Senator Prentice - 1.

      SENATE BILL NO. 6279, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


PERSONAL PRIVILEGE


      Senator Hale: “A point of personal privilege. I think a lot of you know that this has been baby week for me. We’ve been doing the count down every day to the day my little grand baby was born. Happened this morning, William Michael was born, weighed 7lbs 8oz., 20" long which my daughter said means that they’re going to be good looking. So, I know that people have been very kind with their concern. This is the first one that she’s been able to hold with her because when I announced the last one she had breathing problems and they zipped her off and so anyway, a good day.”


PERSONAL PRIVILEGE


      Senator Brandland: “A point of personal privilege. I would like to draw your attention to this picture. This woman, this is probably not a very good picture but I’d like you to know that she’s much more attractive in person. I want you to know that many years ago my wife and I decided to get married. We’ve decided a few years ago that on our anniversary that we would go some place warm and that we would spend our anniversary some place warm. You might see where I’m going here. I also was reminded, fairly recently, that when I announced to my wife, ‘I’d really like to run for the Senate.’ She told me, ‘You know, I didn’t marry you so that you could spend our anniversary in Olympia.’ Now, I tried, I talked to Senator Esser and I said, ‘Senator Esser, is it possible for us to adjourn early today?’ and he suggested that I send her his love. I think you may see where I’m also going, because this is my anniversary, this is my thirty-second anniversary. I can tell you today I would not be with this body if it were not for my wife. She has truly been an inspiration to me and no matter how high I get I will always look up to my wife. I will also tell you that I, although I would, I really do love being here with you. I would much prefer to be some place else today and if I can not be with her today, I at least want to be able to say on the floor of the Senate that I love her very, very much and that I wish her a happy anniversary. Thank you.”


SECOND READING


     ENGROSSED SENATE BILL NO. 5297, by Senators Horn and Haugen

 

Allowing reciprocal waiver of driver's license exams.


      The bill was read the second time.

MOTION


      Senator Horn moved that the following amendment by Senators Horn be adopted:

      On page 4, after line 30, insert the following:

      NEW SECTION. Sec. 6. This act takes effect May 1, 2005.”




      Senator Horn spoke in favor of adoption of the amendment.

      The President declared the question before the Senate to be the adoption of the amendment by Senator Horn on page 4, line 30 to Senate Bill No. 5297.

      The motion by Senator Horn carried and the amendment was adopted by voice vote.


      On motion of Senator Horn the following title amendment was adopted:

      On page 1, line 2 of the title, after "46.20 RCW;" strike "and" and after "section" on line 3 of the title insert "; and providing an effective date"


MOTION


      On motion of Senator Horn, the rules were suspended, Engrossed Senate Bill No. 5297 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senators Horn and Haugen spoke in favor of passage of the bill.

      The President declared the question before the Senate to be the final passage of Engrossed Senate Bill No. 5297.


ROLL CALL


      The Secretary called the roll on the final passage of Engrossed Senate Bill No. 5297 and the bill passed the Senate by the following vote: Yeas, 48; Nays, 0; Absent, 1; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 48.

     Absent: Senator Deccio - 1.

      ENGROSSED SENATE BILL NO. 5297, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


SECOND READING



     SENATE BILL NO. 6286, by Senator Morton

 

Modifying provisions of the heating oil pollution liability protection act.


MOTIONS


      On motion of Senator Morton, Substitute Senate Bill No. 6286 was substituted for Senate Bill No. 6286 and the substitute bill was placed on second reading and read the second time.

      On motion of Senator Morton, the rules were suspended, Substitute Senate Bill No. 6286 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senators Morton and Fraser spoke in favor of passage of the bill.

      The President declared the question before the Senate to be the final passage of Substitute Senate Bill No. 6286.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 6286 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 49.

      SUBSTITUTE SENATE BILL NO. 6286, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


SECOND READING


     SENATE BILL NO. 6496, by Senators Schmidt and Eide; by request of Administrative Office of the Courts

 

Regulating access to confidential court records.


MOTIONS


      On motion of Senator Schmidt, Substitute Senate Bill No. 6496 was substituted for Senate Bill No. 6496 and the substitute bill was placed on second reading and read the second time.

      On motion of Senator Schmidt, the rules were suspended, Substitute Senate Bill No. 6496 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senator Schmidt spoke in favor of passage of the bill.

      The President declared the question before the Senate to be the final passage of Substitute Senate Bill No. 6496.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 6496 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 49.

      SUBSTITUTE SENATE BILL NO. 6496, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


SECOND READING




     ENGROSSED SENATE BILL NO. 6623, by Senator Prentice

 

Regulating insurable interests and employer-owned life insurance.


      The bill was read the second time.


MOTION


      Senator Prentice moved that the following amendment by Senator Prentice be adopted:

      Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 48.18.010 and 1947 c 79 s .18.01 are each amended to read as follows:

      ((The applicable provisions of this chapter shall apply to insurances other than ocean marine and foreign trade insurances. This chapter shall not apply to life or disability insurance policies not issued for delivery in this state nor delivered in this state.)) This chapter applies to insurances other than ocean marine and foreign trade insurances.

      Sec. 2. RCW 48.18.030 and 1992 c 51 s 1 are each amended to read as follows:

      (1) Any individual of competent legal capacity may ((procure or effect an insurance contract upon)) insure his or her own life or body for the benefit of any person. ((But no)) A person ((shall procure or cause to be procured any insurance contract upon)) may not insure the life or body of another individual unless the benefits under ((such)) the contract are payable to the individual insured or ((his)) the individual's personal representative((s)), or to a person having, at the time when ((such)) the contract was made, an insurable interest in the individual insured.

      (2) If the beneficiary, assignee or other payee under any contract made in violation of this section receives from the insurer any benefits ((thereunder)) accruing upon the death, ((disablement)) disability, or injury of the individual insured, the individual insured or ((his)) the individual's executor or administrator((, as the case may be,)) may maintain an action to recover ((such)) any benefits from the person ((so)) receiving them.

      (3)(a) "Insurable interest" as used in this section and in RCW 48.18.060 includes only the following interests ((as follows)):

      (((a))) (i) In the case of individuals related closely by blood or by law, a substantial interest engendered by love and affection; and

      (((b))) (ii) In the case of other persons, a lawful and substantial economic interest in having the life, health, or bodily safety of the individual insured continue, as distinguished from an interest ((which)) that would arise only by, or would be enhanced in value by, the death, ((disablement)) disability, or injury of the individual insured.

      (c))) (b) An individual ((heretofore or hereafter)) who is party to a contract or option for the purchase or sale of an interest in a business partnership or firm, or of shares of stock of a close corporation or of an interest in ((such)) those shares, has an insurable interest in the life of each individual party to ((such)) the contract and for the purposes of ((such)) that contract only, in addition to any insurable interest ((which)) that may otherwise exist as to the life of such individual.

      (((d))) (c) A guardian, trustee, or other fiduciary has an insurable interest in the life of any person for whose benefit the fiduciary holds property, and in the life of any other individual in whose life ((such)) the person has an insurable interest.

      (((e))) (d) Subject to rules adopted under subsection (4) of this section, upon joint application with a nonprofit organization for, or transfer to a nonprofit organization of, an insurance policy on the life of a person naming the organization as owner and beneficiary, a nonprofit organization's interest in the life of a person if:

      (i) The nonprofit organization was established exclusively for religious, charitable, scientific, literary, or educational purposes, or to promote amateur athletic competition, to conduct testing for public safety, or to prevent cruelty to children or animals; and

      (ii) The nonprofit organization:

      (A) Has existed for a minimum of five years; or

      (B) Has been issued a certificate of exemption to conduct a charitable gift annuity business under RCW 48.38.010, or is authorized to conduct a charitable gift annuity business under RCW 28B.10.485; or

      (c) Has been organized, and at all times has been operated, exclusively for benefit of, to perform the functions of, or to carry out the purposes of one or more nonprofit organizations described in (((e))) (d)(ii)(A) or (B) of this subsection and is operated, supervised, or controlled by or in connection with one or more ((such)) of those nonprofit organizations; and

      (iii) For a joint application, the person is not an employee, officer, or director of the organization who receives significant compensation from the organization and who became affiliated with the organization in that capacity less than one year before the joint application.

      (4) The commissioner may adopt rules governing joint applications for, and transfers of, life insurance under subsection (3)(((e))) (d) of this section. The rules may include:

      (a) Standards for full and fair disclosure that set forth the manner, content, and required disclosure for the sale of life insurance issued under subsection (3)(((e))) (d) of this section; and

      (b) For joint applications, a grace period of thirty days during which the insured person may direct the nonprofit organization to return the policy and the insurer to refund any premium paid to the party that, directly or indirectly, paid the premium; and

      (c) Standards for granting an exemption from the five-year existence requirement of subsection (3)(((e))) (d)(ii)(A) of this section to a private foundation that files with the insurance commissioner documents, stipulations, and information as the insurance commissioner may require to carry out the purpose of subsection (3)(((e))) (d) of this section.

      (5) Nothing in this section permits the personal representative of the insured's estate to recover the proceeds of a policy on the life of a deceased insured person that was applied for jointly by, or transferred to, an organization covered by subsection (3)(((e))) (d) of this section, where the organization was named owner and beneficiary of the policy.

      This subsection applies to all life insurance policies applied for by, or transferred to, an organization covered by subsection (3)(((e))) (d) of this section, regardless of the time of application or transfer and regardless of whether the organization would have been covered at the time of application or transfer.

      NEW SECTION. Sec. 3. A new section is added to chapter 48.18 RCW to read as follows:

      (1) "Employer-owned life insurance policy" as used in this section and section 5 of this act means an insurance policy purchased by an employer on the life of an employee, for the benefit of a person other than the employee or the employee's personal representative.

      (2) An employer-owned life insurance policy may not be made or take effect unless at the time the contract is made the individual insured consents to the contract in writing.

      (3) An employer may not retaliate in any manner against an employee for providing written notice that he or she does not want to be insured under an employer-owned life insurance policy.

      (4) No later than thirty days after the date on which an employer purchases an employer-owned life insurance policy on an employee, the employer must provide to the employee a written notice that contains the following information:

      (a) A statement that the employer carries an employer-owned life insurance policy on the life of the employee;

      (b) The identity of the insurance carrier of the policy;

      (c) The benefit amount of the policy; and

      (d) The identity of the beneficiary of the policy.

      Sec. 4. RCW 48.18.060 and 1947 c 79 s .18.06 are each amended to read as follows:

      ((No)) A life or disability insurance contract upon an individual((, except a contract of group life insurance or of group or blanket disability insurance as defined in this code, shall)) may not be made or ((effectuated)) take effect unless at the time ((of the making of)) the contract is made the individual insured((, being of competent legal capacity to contract, in writing applies therefor or consents thereto,)) applies for or consents to the contract in writing, except in the following cases:

      (1) A spouse may ((effectuate such insurance upon)) insure the life of the other spouse.

      (2) Any person having an insurable interest in the life of a minor, or any person upon whom a minor is dependent for support and maintenance, may ((effectuate insurance upon)) insure the life of the minor.

      (3) A contract of group or blanket disability insurance may be effectuated upon an individual.

      (4) A contract of group life insurance may be effectuated upon an individual, except as otherwise provided in section 3 of this act.

      NEW SECTION. Sec. 5. A new section is added to chapter 48.18 RCW to read as follows:

      With respect to employer-owned life insurance policies, this act shall apply only to policies issued and delivered after the effective date of this act.

      NEW SECTION. Sec. 6. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately."

      Senator Prentice spoke in favor of adoption of the striking amendment. 

      The President declared the question before the Senate to be the adoption of the striking amendment by Senator Prentice to Senate Bill No. 6623.

      The motion by Senator Prentice carried and the striking amendment was adopted by voice vote.


      On motion of Senator Prentice the following title amendment was adopted:

      On page 1, line 2 of the title, after "insurance;" strike the remainder of the title and insert "amending RCW 48.18.010, 48.18.030, and 48.18.060; adding new sections to chapter 48.18 RCW; and declaring an emergency."


MOTION


      On motion of Senator Prentice, the rules were suspended, Engrossed Senate Bill No. 6623 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the final passage of Engrossed Senate Bill No. 6623.


ROLL CALL


      The Secretary called the roll on the final passage of Engrossed Senate Bill No. 6623 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 49.

      ENGROSSED SENATE BILL NO. 6623, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


SECOND READING


     SENATE BILL NO. 6189, by Senators Johnson, Kline, Esser and Roach

 

Regulating receiverships.


MOTIONS


      On motion of Senator Johnson, Substitute Senate Bill No. 6189 was substituted for Senate Bill No. 6189 and the substitute bill was placed on second reading and read the second time.

      On motion of Senator Johnson, the rules were suspended, Substitute Senate Bill No. 6189 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senators Johnson and Kline spoke in favor of passage of the bill.

      The President declared the question before the Senate to be the final passage of Substitute Senate Bill No. 6189.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 6189 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 49.

      SUBSTITUTE SENATE BILL NO. 6189, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


SECOND READING


     SENATE BILL NO. 6237, by Senators Hewitt, Haugen, Mulliken, Rasmussen and Parlette

 

Providing nonagricultural commercial and retail uses that support and sustain agricultural operations on designated agricultural lands of long-term significance.


      The bill was read the second time.


MOTION


      On motion of Senator Mulliken, the rules were suspended, Senate Bill No. 6237 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senators Mulliken and Kline spoke in favor of passage of the bill.

      The President declared the question before the Senate to be the final passage of Senate Bill No. 6237.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 6237 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 49.

      SENATE BILL NO. 6237, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


SECOND READING


     SENATE BILL NO. 6242, by Senators Parlette and Berkey

 

Establishing a statewide strategy for land acquisitions and disposal.


MOTIONS


      On motion of Senator Parlette, Substitute Senate Bill No. 6242 was substituted for Senate Bill No. 6242 and the substitute bill was placed on second reading and read the second time.

      On motion of Senator Parlette, the rules were suspended, Substitute Senate Bill No. 6242 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senators Parlette and Regala spoke in favor of passage of the bill.

      The President declared the question before the Senate to be the final passage of Substitute Senate Bill No. 6242.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 6242 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 49.

      SUBSTITUTE SENATE BILL NO. 6242, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


SECOND READING


     SENATE BILL NO. 6217, by Senators Swecker, Prentice, Doumit, Berkey, Morton, Rasmussen, Hale, Jacobsen, Hargrove, Regala, Finkbeiner, T. Sheldon, Horn, Esser, Oke and Haugen

 

Creating the Washington regulatory improvement center. Revised for 1st Substitute: Creating the Washington regulatory improvement project.


MOTIONS


      On motion of Senator Swecker, Second Substitute Senate Bill No. 6217 was substituted for Senate Bill No. 6217 and the second substitute bill was placed on second reading and read the second time.

      On motion of Senator Swecker, the rules were suspended, Second Substitute Senate Bill No. 6217 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senators Swecker and Fraser spoke in favor of passage of the bill.

      The President declared the question before the Senate to be the final passage of Second Substitute Senate Bill No. 6217.


ROLL CALL


      The Secretary called the roll on the final passage of Second Substitute Senate Bill No. 6217 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 49.

      SECOND SUBSTITUTE SENATE BILL NO. 6217, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


SECOND READING


     SENATE BILL NO. 6356, by Senators Honeyford and Rasmussen

 

Modifying physician assistant provisions.


      The bill was read the second time.


MOTION


      On motion of Senator Honeyford, the rules were suspended, Senate Bill No. 6356 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senators Honeyford and Thibaudeau spoke in favor of passage of the bill.

      The President declared the question before the Senate to be the final passage of Senate Bill No. 6356.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 6356 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 49.

      SENATE BILL NO. 6356, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


SECOND READING


     SENATE BILL NO. 6501, by Senators Carlson, Kohl-Welles, Pflug, Jacobsen, Schmidt, Rasmussen, Shin, Winsley and McAuliffe; by request of State Board for Community and Technical Colleges

 

Regarding instructional materials for students with disabilities at public and private institutions of higher education.


MOTIONS


      On motion of Senator Carlson, Substitute Senate Bill No. 6501 was substituted for Senate Bill No. 6501 and the substitute bill was placed on second reading and read the second time.

      On motion of Senator Carlson, the rules were suspended, Substitute Senate Bill No. 6501 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senators Carlson and Kohl-Welles spoke in favor of passage of the bill.

      The President declared the question before the Senate to be the final passage of Substitute Senate Bill No. 6501.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 6501 and the bill passed the Senate by the following vote: Yeas, 48; Nays, 0; Absent, 1; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 48.

     Absent: Senator Esser - 1.

      SUBSTITUTE SENATE BILL NO. 6501, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


SECOND READING


     SENATE JOINT MEMORIAL NO. 8032, by Senators Schmidt, T. Sheldon, Shin, Hale, B. Sheldon and McAuliffe

 

Urging Congress to fully restore funding for the manufacturing extension partnership program.


MOTIONS


      On motion of Senator Schmidt, Substitute Senate Joint Memorial No. 8032 was substituted for Senate Joint Memorial No. 8032 and the substitute memorial was placed on second reading and read the second time.

      On motion of Senator Schmidt, the rules were suspended, Substitute Senate Joint Memorial No. 8032 was advanced to third reading, the second reading considered the third and the memorial was placed on final passage.

      Senators Schmidt and Sheldon, T. spoke in favor of the memorial.

      The President declared the question before the Senate to be the final passage of Substitute Senate Joint Memorial No. 8032.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Joint Memorial No. 8032 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 49.

      SUBSTITUTE SENATE JOINT MEMORIAL NO. 8032, having received the constitutional majority, was declared passed.


SECOND READING

     SENATE BILL NO. 6682, by Senator Sheahan

 

Allowing for regional programs to provide for the recovery of fish runs.



MOTIONS


      On motion of Senator Sheahan, Substitute Senate Bill No. 6682 was substituted for Senate Bill No. 6682 and the substitute bill was placed on second reading and read the second time.

      On motion of Senator Sheahan, the rules were suspended, Substitute Senate Bill No. 6682 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senators Sheahan and Doumit spoke in favor of passage of the bill.

      The President declared the question before the Senate to be the final passage of Substitute Senate Bill No. 6682.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 6682 and the bill passed the Senate by the following vote: Yeas, 46; Nays, 3; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Finkbeiner, Franklin, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Winsley and Zarelli - 46.

     Voting nay: Senators Fairley, Fraser and Thibaudeau - 3.

      SUBSTITUTE SENATE BILL NO. 6682, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


MOTION


      On motion of Senator Esser, the Senate advanced to the seventh order of business.


THIRD READING


     SUBSTITUTE SENATE BILL NO. 5797, by Senate Committee on Health & Long-Term Care (originally sponsored by Senators Parlette and Brandland)

 

Requiring the department of social and health services to inspect adult family homes at least every twenty-four months.


      The bill was read on Third Reading.

      Senator Parlette spoke in favor of passage of the bill.

      The President declared the question before the Senate to be the final passage of Substitute Senate Bill No. 5797.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5797 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 49.

      SUBSTITUTE SENATE BILL NO. 5797, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


MOTION


      On motion of Senator Esser, the Senate reverted to the sixth order of business.


SECOND READING


     SENATE BILL NO. 5067, by Senators Morton, Thibaudeau and Hale

 

Allowing garbage trucks to bypass weigh stations.


MOTIONS


      On motion of Senator Morton, Substitute Senate Bill No. 5067 was substituted for Senate Bill No. 5067 and the substitute bill was placed on second reading and read the second time.

      On motion of Senator Morton, the rules were suspended, Substitute Senate Bill No. 5067 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senator Morton spoke in favor of passage of the bill.

      The President declared the question before the Senate to be the final passage of Substitute Senate Bill No. 5067.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5067 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 49.

      SUBSTITUTE SENATE BILL NO. 5067, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


SECOND READING


     SENATE BILL NO. 6650, by Senators Keiser and Hewitt; by request of Department of Labor & Industries

 

Providing the department of labor and industries with the rule-making authority to address recommendations of the elevator safety advisory committee relating to the licensing of private residence conveyance work.


      The bill was read the second time.


MOTION


      On motion of Senator Keiser, the rules were suspended, Senate Bill No. 6650 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senators Keiser and Honeyford spoke in favor of passage of the bill.


MOTION


      On motion of Senator Hewitt, Senator Stevens was excused.


      The President declared the question before the Senate to be the final passage of Senate Bill No. 6650.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 6650 and the bill passed the Senate by the following vote: Yeas, 48; Nays, 0; Absent, 0; Excused, 1.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Swecker, Thibaudeau, Winsley and Zarelli - 48.

     Excused: Senator Stevens - 1.

      SENATE BILL NO. 6650, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


SECOND READING



     SENATE BILL NO. 6402, by Senators Benton, Rasmussen, Winsley, Keiser and Kohl-Welles

 

Providing the option of keeping landlord trust account funds in a credit union. Revised for 1st Substitute: Giving landlords the flexibility to deposit landlord trust account funds in any financial institution.


MOTIONS


      On motion of Senator Benton, Substitute Senate Bill No. 6402 was substituted for Senate Bill No. 6402 and the substitute bill was placed on second reading and read the second time.

      On motion of Senator Benton, the rules were suspended, Substitute Senate Bill No. 6402 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senator Benton spoke in favor of passage of the bill.

      The President declared the question before the Senate to be the final passage of Substitute Senate Bill No. 6402.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 6402 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 49.

      SUBSTITUTE SENATE BILL NO. 6402, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


SECOND READING


     SENATE BILL NO. 6438, by Senators Horn, Haugen, Swecker, Oke and Esser

 

Assisting vessel registration enforcement.


MOTIONS


      On motion of Senator Horn, Substitute Senate Bill No. 6438 was substituted for Senate Bill No. 6438 and the substitute bill was placed on second reading and read the second time.

      On motion of Senator Horn, the rules were suspended, Substitute Senate Bill No. 6438 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senators Horn, Haugen and Spanel spoke in favor of passage of the bill.

      Senator Mulliken spoke against passage of the bill.

      The President declared the question before the Senate to be the final passage of Substitute Senate Bill No. 6438.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 6438 and the bill passed the Senate by the following vote: Yeas, 48; Nays, 1; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 48.

     Voting nay: Senator Mulliken - 1.

      SUBSTITUTE SENATE BILL NO. 6438, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


SECOND READING



     SENATE BILL NO. 5533, by Senators Kohl-Welles, Johnson, McAuliffe, Carlson, Keiser, Rasmussen and Kline

 

Establishing provisions for disclosure of misconduct by applicants for school district employment. Revised for 1st Substitute: Establishing provisions for disclosure of sexual misconduct by applicants for school district employment. Revised for 2nd Substitute: Providing increased access to information on disciplinary actions taken against school employees.


MOTIONS


      On motion of Senator Johnson, Second Substitute Senate Bill No. 5533 was substituted for Senate Bill No. 5533 and the second substitute bill was placed on second reading and read the second time.


MOTION


      Senator McAuliffe moved that the following amendment by Senators McAuliffe, Kohl-Welles and Johnson be adopted:

      On page 4, after line 3, insert the following:

      "(12) School personnel have the right to review their entire personnel file relating to sexual misconduct as addressed in this section and attach rebuttals to any documents as the employee deems necessary. These rebuttal documents shall be disclosed in the same manner as the document to which they refer. The provisions of this subsection shall not override any protections provided individuals under the state whistleblower laws as established in RCW 42.41."

      Senators McAuliffe and Johnson spoke in favor of adoption of the amendment.

      The President declared the question before the Senate to be the adoption of the amendment by Senators McAuliffe, Kohl-Welles and Johnson on page 4, after line 3 to Second Substitute Senate Bill No. 5533.

      The motion by Senator McAuliffe carried and the amendment was adopted by voice vote.


MOTION


      On motion of Senator Kohl-Welles, the rules were suspended, Engrossed Second Substitute Senate Bill No. 5533 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senators Kohl-Welles and Benton spoke in favor of passage of the bill.


MOTION


      On motion of Senator Murray, Senator Hewitt was excused.

      The President declared the question before the Senate to be the final passage of Engrossed Second Substitute Senate Bill No. 5533.


ROLL CALL


      The Secretary called the roll on the final passage of Engrossed Second Substitute Senate Bill No. 5533 and the bill passed the Senate by the following vote: Yeas, 48; Nays, 0; Absent, 0; Excused, 1.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 48.

     Excused: Senator Hewitt - 1.

      ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5533, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


MOTION


      At 11:28 a.m., on motion of Senator Esser, the Senate recessed until 2:00 p.m.


      The Senate was called to order at 2:00 p.m. by President Owen.


MOTION


      On motion of Senator Esser, the Senate reverted to the fourth order of business.


MESSAGE FROM THE HOUSE


February 11, 2004


MR. PRESIDENT:

The House has passed the following bills:

      ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1019,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1498,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1741,

      ENGROSSED HOUSE BILL NO. 2318,

      ENGROSSED HOUSE BILL NO. 2471,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 2550

and the same are herewith transmitted.


RICHARD NAFZIGER, Chief Clerk


MOTION


      On motion of Senator Esser, the Senate advanced to the sixth order of business.



SECOND READING



     SENATE BILL NO. 6577, by Senators Hargrove, Schmidt, Poulsen, Esser, Stevens, Berkey, Eide, McAuliffe and Rasmussen

 

Ordering a study of reporting requirements for community action agencies.


      The bill was read the second time.


MOTION


      On motion of Senator Stevens, the rules were suspended, Senate Bill No. 6577 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senator Stevens spoke in favor of passage of the bill.


MOTIONS


      On motion of Senator Hewitt, Senators Finkbeiner, Horn, Johnson, Roach and Swecker were excused.

      On motion of Senator Eide, Senator Fairley was excused.


      The President declared the question before the Senate to be the final passage of Senate Bill No. 6577.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 6577 and the bill passed the Senate by the following vote: Yeas, 44; Nays, 0; Absent, 2; Excused, 3.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Rasmussen, Regala, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 44.

     Absent: Senators Kline and Prentice - 2.

     Excused: Senators Fairley, Finkbeiner and Roach - 3.

      SENATE BILL NO. 6577, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


SECOND READING


     SENATE BILL NO. 6160, by Senators Parlette, Keiser and Pflug

 

Regarding fairness and accuracy in the distribution of risk in boarding homes and nursing homes.


MOTIONS


      On motion of Senator Parlette, Substitute Senate Bill No. 6160 was substituted for Senate Bill No. 6160 and the substitute bill was placed on second reading and read the second time.

      On motion of Senator Parlette, the rules were suspended, Substitute Senate Bill No. 6160 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senator Parlette spoke in favor of passage of the bill.


MOTION


      On motion of Senator Eide, Senator Kline was excused.


      The President declared the question before the Senate to be the final passage of Substitute Senate Bill No. 6160.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 6160 and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 47.

     Excused: Senators Fairley and Kline - 2.

      SUBSTITUTE SENATE BILL NO. 6160, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


SECOND READING


     SENATE BILL NO. 6112, by Senators Prentice, Benton, Winsley, Keiser and Kohl-Welles

 

Regulating self-funded multiple employer welfare arrangements.


MOTIONS


      On motion of Senator Benton, Substitute Senate Bill No. 6112 was substituted for Senate Bill No. 6112 and the substitute bill was placed on second reading and read the second time.


MOTION


      Senator Benton moved that the following striking amendment by Senators Benton, Berkey and Prentice be adopted:

      Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1 This chapter may be cited as the "self-funded multiple employer welfare arrangement regulation act."

      NEW SECTION. Sec. 2 The purposes of this chapter are to:

      (1) Provide for the authorization and registration of self-funded multiple employer welfare arrangements;

      (2) Regulate self-funded multiple employer welfare arrangements in order to ensure the financial integrity of the arrangements;

      (3) Provide reporting requirements for self-funded multiple employer welfare arrangements; and

      (4) Provide for sanctions against self-funded multiple employer welfare arrangements organized, operated, providing benefits, or maintained in this state that do not comply with this chapter.

      NEW SECTION. Sec. 3 The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

      (1) "Bona fide association" means an association of employers that has been in existence for a period of not less than ten years prior to sponsoring a self-funded multiple employer welfare arrangement, during which time the association has engaged in substantial activities relating to the common interests of member employers, and that continues to engage in substantial activities in addition to sponsoring an arrangement. However, an association that was formed and began sponsoring an arrangement prior to October 1, 1995, is not subject to the requirement that the association be in existence for ten years prior to sponsoring an arrangement.

      (2) "Employer" means any person, firm, corporation, partnership, business trust, legal representative, or other business entity which engages in any business, industry, profession, or activity in this state and employs one or more other persons or who contracts with one or more persons, the essence of which is the personal labor of that person or persons.

      (3) "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.

      (4) "Incurred claims" means the value of all amounts paid or payable under a multiple employer welfare arrangement determined by contract to be a liability with an incurred claims date during the valuation period. It includes all payments during the valuation period plus a reasonable estimate of unpaid claims liabilities.

      (5) "Multiple employer welfare arrangement" means a multiple employer welfare arrangement as defined by 29 U.S.C. Sec. 1002, but does not include an arrangement, plan, program, or interlocal agreement of or between any political subdivisions of this state, any federal agencies, or any contractors or subcontractors with federal agencies at a federal government facility within this state.

      (6) "Qualified actuary" means an individual who:

      (a) Is a member in good standing of the American academy of actuaries; and

      (b) Is qualified to sign statements of actuarial opinion for health annual statements in accordance with the American academy of actuaries qualification standards for actuaries signing the statements.

      (7) "Self-funded multiple employer welfare arrangement" or "arrangement" means a multiple employer welfare arrangement that does not provide for payment of benefits under the arrangement solely through a policy or policies of insurance issued by one or more insurance companies licensed under this title.

      (8) "Surplus" means the excess of the assets of a self-funded multiple employer welfare arrangement over the liabilities of the arrangement. The assets and liabilities should be determined in accordance with the accounting practices and procedures manuals as adopted by the national association of insurance commissioners, unless otherwise provided by law.

      NEW SECTION. Sec. 4 (1) Except as provided in subsection (3) of this section, a person may not establish, operate, provide benefits, or maintain a self-funded multiple employer welfare arrangement in this state unless the arrangement first obtains a certificate of authority from the commissioner.

      (2) An arrangement is considered to be established, operated, providing benefits, or maintained in this state if (a) one or more of the employer members participating in the arrangement is either domiciled in or maintains a place of business in this state, or (b) the activities of the arrangement or employer members fall under the scope of RCW 48.01.020.

      (3) An arrangement established, operated, providing benefits, or maintained in this state prior to December 31, 2003, has until April 1, 2005, to file a substantially complete application for a certificate of authority. An arrangement that files a substantially complete application for a certificate of authority by that date is allowed to continue to operate without a certificate of authority until the commissioner approves or denies the arrangement's application for a certificate of authority.

      NEW SECTION. Sec. 5 The commissioner may not issue a certificate of authority to a self-funded multiple employer welfare arrangement unless the arrangement establishes to the reasonable satisfaction of the commissioner that the following requirements have been satisfied by the arrangement:

      (1) The employers participating in the arrangement are members of a bona fide association;

      (2) The employers participating in the arrangement exercise control over the arrangement, as follows:

      (a) Subject to (b) of this subsection, control exists if the board of directors of the bona fide association or the employers participating in the arrangement have the right to elect at least seventy-five percent of the individuals designated in the arrangement's organizational documents as having control over the operations of the arrangement and the individuals designated in the arrangement's organizational documents in fact exercise control over the operation of the arrangement; and

      (b) The use of a third-party administrator to process claims and to assist in the administration of the arrangement is not evidence of the lack of exercise of control over the operation of the arrangement;

      (3) In this state, the arrangement provides only health care services;

      (4) In this state, the arrangement provides or arranges benefits for health care services in compliance with those provisions of this title that mandate particular benefits or offerings and with provisions that require access to particular types or categories of health care providers and facilities;

      (5) The arrangement provides health care services to not less than twenty employers and not less than seventy-five employees;

      (6) The arrangement may not solicit participation in the arrangement from the general public. However, the arrangement may employ licensed insurance agents who receive a commission, unlicensed individuals who do not receive a commission, and may contract with a licensed insurance producer who may be paid a commission or other remuneration, for the purpose of enrolling and renewing the enrollments of employers in the arrangement;

      (7) The arrangement has been in existence and operated actively for a continuous period of not less than ten years as of December 31, 2003, except for an arrangement that has been in existence and operated actively since December 31, 2000, and is sponsored by an association that has been in existence more than twenty-five years; and

      (8) The arrangement is not organized or maintained solely as a conduit for the collection of premiums and the forwarding of premiums to an insurance company.

      NEW SECTION. Sec. 6 (1) In addition to the requirements under section 5 of this act, self-funded multiple employer welfare arrangements are subject to the following requirements:

      (a) Arrangements must maintain a calendar year for operations and reporting purposes;

      (b) Arrangements must satisfy one of the following requirements:

      (i)(A) The arrangement must deposit two hundred thousand dollars with the commissioner to be used for the payment of claims in the event that the arrangement becomes insolvent; and

      (B) The arrangement must submit to the commissioner a written plan of operation that, in the reasonable discretion of the commissioner, ensures the financial integrity of the arrangement; or

      (ii) The arrangement demonstrates to the reasonable satisfaction of the commissioner the ability of the arrangement to remain financially solvent, for which purpose the commissioner may consider:

      (A) The pro forma financial statements of the arrangement;

      (B) The types and levels of excess of loss insurance coverage, including the attachment points of the coverage and whether the points are reflected as annual or monthly levels;

      (C) Whether a deposit is required for each employee covered under the arrangement equal to at least one month's cost of providing benefits under the arrangement;

      (D) The experience of the individuals who will be involved in the management of the arrangement, including employees, independent contractors, and consultants; and

      (E) Other factors as reasonably determined by the commissioner to be relevant to a determination of whether the arrangement is able to operate in a financially solvent manner.

      (2) The commissioner may require that the articles, bylaws, agreements, trusts, or other documents or instruments describing the rights and obligations of the employers, employees, and beneficiaries of the arrangement provide that employers participating in the arrangement are subject to pro rata assessment for all liabilities of the arrangement.

      (3) Self-funded multiple employer welfare arrangements with fewer than one thousand covered persons are required to have aggregate stop loss coverage, with an attachment point of one hundred twenty-five percent of expected claims. If the arrangement is allowed to assess the participating employers to cover actual or projected claims in excess of plan assets, then the attachment point shall be increased by the amount of the allowable assessments. If the required attachment point exceeds one hundred seventy-five percent of expected claims, aggregate stop loss coverage shall be waived. Arrangements with one thousand covered persons or more are not required to have aggregate stop loss coverage.

      (4) The arrangement must demonstrate continued compliance with respect to the conditions set forth in this section as a condition of receiving and maintaining a certificate of authority. The commissioner may waive continued compliance with respect to the conditions in this section at any time after the commissioner has granted a certificate of authority to an arrangement.

      NEW SECTION. Sec. 7. A self-funded multiple employer welfare arrangement must apply for a certificate of authority on a form prescribed by the commissioner and must submit the application, together with the following documents, to the commissioner:

      (1) A copy of all articles, bylaws, agreements, trusts, or other documents or instruments describing the rights and obligations of the employers, employees, and beneficiaries of the arrangement;

      (2) A copy of the summary plan description or summary plan descriptions of the arrangement, including those filed or required to be filed with the United States department of labor, together with any amendments to the description;

      (3) Evidence of coverage of or letters of intent to participate executed by at least twenty employers providing allowable benefits to at least seventy-five employees;

      (4) A copy of the arrangement's most recent year's financial statements that must include, at a minimum, a balance sheet, an income statement, a statement of changes in financial position, and an actuarial opinion signed by a qualified actuary stating that the unpaid claim liability of the arrangement satisfies the standards under this title;

      (5) Proof that the arrangement maintains or will maintain fidelity bonds required by the United States department of labor under the employee retirement income security act of 1974, 29 U.S.C. Sec. 1001 et seq.;

      (6) A copy of any excess of loss insurance coverage policies maintained or proposed to be maintained by the arrangement;

      (7) Biographical reports on forms prescribed by the national association of insurance commissioners evidencing the general trustworthiness and competence of each individual who is serving or who will serve as an officer, director, trustee, employee, or fiduciary of the arrangement;

      (8) Fingerprint cards and current fees payable to the Washington state patrol to perform a state and national criminal history background check of any person who exercises control over the financial dealings and operations of the self-funded multiple employer welfare arrangement, including collection of employer contributions, investment of assets, payment of claims, rate setting, and claims adjudication. The fingerprints and any additional information may be submitted to the federal bureau of investigation and any results of the check must be returned to the office of the insurance commissioner. The results may be disseminated to any governmental agency or entity authorized to receive them; and

      (9) A statement executed by a representative of the arrangement certifying, to the best knowledge and belief of the representative, that:

      (a) The arrangement is in compliance with section 5 of this act;

      (b) The arrangement is in compliance with the requirements of the employee retirement income security act of 1974, 29 U.S.C. Sec. 1001 et seq., or a statement of any requirements with which the arrangement is not in compliance and a statement of proposed corrective actions; and

      (c) The arrangement is in compliance with sections 8 and 9 of this act.

      NEW SECTION. Sec. 8. Self-funded multiple employer welfare arrangements must maintain continuously a surplus equal to at least ten percent of the next twelve months projected incurred claims or two million dollars, whichever is greater. The commissioner may proceed against self-funded multiple employer welfare arrangements that fail to maintain the level of surplus required by this section in any manner that the commissioner is authorized to proceed against a health care service contractor that failed to maintain minimum net worth.

      NEW SECTION. Sec. 9. A self-funded multiple employer welfare arrangement must establish and maintain contribution rates for participation under the arrangement that satisfy either of the following requirements:

      (1) Contribution rates must equal or exceed the sum of projected incurred claims for the year, plus all projected costs of operation of the arrangement for the year, plus an amount equal to any deficiency in the surplus of the arrangement for the prior year, minus an amount equal to the surplus of the arrangement in excess of the minimum required level of surplus; or

      (2) Contribution rates must equal or exceed a funding level established by a report prepared by a qualified actuary.

      NEW SECTION. Sec. 10. (1) The commissioner shall grant or deny an application for a certificate of authority within one hundred eighty days of the date that a completed application, together with the items designated in section 7 of this act, is submitted to the commissioner.

      (2) The commissioner shall grant the application of an arrangement that satisfies the applicable requirements of sections 5 through 9 of this act.

      (3) The commissioner shall deny the application of an arrangement that does not satisfy the applicable requirements of sections 5 through 9 of this act. Denial of an application for a certificate of authority is subject to appeal under chapter 34.05 RCW.

      (4) A certificate of authority granted to an arrangement is effective unless revoked by the commissioner under section 12 of this act.

      NEW SECTION. Sec. 11. (1) A self-funded multiple employer welfare arrangement must comply with the reporting requirements of this section.

      (2) Every arrangement holding a certificate of authority from the commissioner must file its financial statements as required by this title and by the commissioner in accordance with the accounting practices and procedures manuals as adopted by the national association of insurance commissioners, unless otherwise provided by law.

      (3) Every arrangement must comply with the provisions of chapters 48.12 and 48.13 RCW.

      (4) Every arrangement holding a certificate of authority shall, annually, before the first day of March, file with the commissioner a true statement of its financial condition, transactions, and affairs as of the thirty-first day of December of the preceding year. The statement forms must be those forms approved by the national association of insurance commissioners for health insurance. The statement must be verified by the oaths of at least two officers of the arrangement. Additional information may be required by this title or by the request of the commissioner.

      (5) Every arrangement must report their annual and other statements in the same manner required of other insurers by rule of the commissioner.

      (6) The arrangement must file with the commissioner a copy of the arrangement's internal revenue service form 5500 together with all attachments to the form, at the time required for filing the form.

      NEW SECTION. Sec. 12. (1) The commissioner may impose sanctions against a self-funded multiple employer welfare arrangement that fails to comply with this chapter. The maximum fine may not exceed ten thousand dollars for each violation.

      (2) The commissioner may issue a notice of intent to revoke the certificate of authority of a self-funded multiple employer welfare arrangement that fails to comply with section 8, 9, or 11 of this act. If, within sixty days of receiving notice under this subsection, the arrangement fails to file with the commissioner a plan to bring the arrangement into compliance with section 8, 9, or 11 of this act, the commissioner may revoke the arrangement's certificate of authority. A revocation of a certificate of authority is subject to appeal under chapter 34.05 RCW.

      (3) An arrangement that fails to maintain the level of surplus required by section 8 of this act is subject to the sanctions authorized in RCW 48.44.160 through 48.44.166.

      NEW SECTION. Sec. 13. A self-funded multiple employer welfare arrangement organized, operated, providing benefits, or maintained in this state without a certificate of authority is in violation of this title.

      NEW SECTION. Sec. 14. Each policy issued by a self-funded multiple employer welfare arrangement must contain, in ten-point type on the front page and the declaration page, the following notice:

      "NOTICE


This policy is issued by a self-funded multiple employer welfare arrangement. A self-funded multiple employer welfare arrangement may not be subject to all of the insurance laws and regulations of your state. State insurance insolvency guaranty funds are not available for a self-funded multiple employer welfare arrangement."

    NEW SECTION. Sec. 15. A self-funded multiple employer welfare arrangement is subject to RCW 48.43.300 through 48.43.370, the rehabilitation provisions under chapter 48.31 RCW, and chapter 48.99 RCW.

    NEW SECTION. Sec. 16. (1) The commissioner may make an examination of the operations of any self-funded multiple employer welfare arrangement as often as he or she deems necessary in order to carry out the purposes of this chapter.

    (2) Every self-funded multiple employer welfare arrangement shall submit its books and records relating to its operation for financial condition and market conduct examinations and in every way facilitate them. For the purpose of examinations, the commissioner may issue subpoenas, administer oaths, and examine the officers and principals of the multiple employer welfare arrangement.

    (3) The commissioner may elect to accept and rely on audit reports made by an independent certified public accountant for the self-funded multiple employer welfare arrangement in the course of that part of the commissioner's examination covering the same general subject matter as the audit. The commissioner may incorporate the audit report in his or her report of the examination.

    (4)(a) The commissioner may also examine any affiliate of the self-funded multiple employer welfare arrangement. An examination of an affiliate is limited to the activities or operations of the affiliate that may impact the financial position of the arrangement.

    (b) For the purposes of this section, "affiliate" has the same meaning as defined in RCW 48.31C.010.

    (5) Whenever an examination is made, all of the provisions of chapter 48.03 RCW not inconsistent with this chapter shall be applicable. In lieu of making an examination himself or herself, the commissioner may, in the case of a foreign self-funded multiple employer welfare arrangement, accept an examination report of the applicant by the regulatory official in its state of domicile. In the case of a domestic self-funded multiple employer welfare arrangement, the commissioner may accept an examination report of the applicant by the regulatory official of a state that has already licensed the arrangement.

    NEW SECTION. Sec. 17. This chapter does not apply to:

    (1) Single employer entities;

    (2) Taft-Hartley plans; or

    (3) Self-funded multiple employer welfare arrangements that do not provide coverage for health care services.

    NEW SECTION. Sec. 18. Participant contributions used to determine the taxable amounts in this state under RCW 48.14.0201 shall be determined in the same manner as premiums taxable in this state are determined under RCW 48.14.090.

    NEW SECTION. Sec. 19. A new section is added to chapter 48.43 RCW to be codified between RCW 48.43.300 and 48.43.370 to read as follows:

    A self-funded multiple employer welfare arrangement, as defined in section 3 of this act, is subject to the same RBC reporting requirements as a domestic carrier under RCW 48.43.300 through 48.43.370.

    NEW SECTION. Sec. 20. A new section is added to chapter 48.31 RCW to read as follows:

    A self-funded multiple employer welfare arrangement, as defined in section 3 of this act, is an insurer under this chapter.

    NEW SECTION. Sec. 21. A new section is added to chapter 48.99 RCW to read as follows:

    A self-funded multiple employer welfare arrangement, as defined in section 3 of this act, is an insurer under this chapter.

    Sec. 22. RCW 48.02.190 and 2003 1st sp.s. c 25 s 923 are each amended to read as follows:

    (1) As used in this section:

    (a) "Organization" means every insurer, as defined in RCW 48.01.050, having a certificate of authority to do business in this state and every health care service contractor or multiple employer welfare arrangement registered to do business in this state. "Class one" organizations shall consist of all insurers as defined in RCW 48.01.050. "Class two" organizations shall consist of all organizations registered under provisions of chapter 48.44 RCW. "Class three" organizations shall consist of self-funded multiple employer welfare arrangements as defined in section 3 of this act.

    (b)(i) "Receipts" means (((i))) (A) net direct premiums consisting of direct gross premiums, as defined in RCW 48.18.170, paid for insurance written or renewed upon risks or property resident, situated, or to be performed in this state, less return premiums and premiums on policies not taken, dividends paid or credited to policyholders on direct business, and premiums received from policies or contracts issued in connection with qualified plans as defined in RCW 48.14.021, and (((ii))) (B) prepayments to health care service contractors as set forth in RCW 48.44.010(3) or participant contributions to self-funded multiple employer welfare arrangements as defined in section 3 of this act less experience rating credits, dividends, prepayments returned to subscribers, and payments for contracts not taken.

    (ii) Participant contributions, under chapter 48.-- RCW (sections 1 through 18 of this act), used to determine the receipts in this state under this section shall be determined in the same manner as premiums taxable in this state are determined under RCW 48.14.090.

    (2) The annual cost of operating the office of insurance commissioner shall be determined by legislative appropriation. A pro rata share of the cost shall be charged to all organizations. Each class of organization shall contribute sufficient in fees to the insurance commissioner's regulatory account to pay the reasonable costs, including overhead, of regulating that class of organization.

    (3) Fees charged shall be calculated separately for each class of organization. The fee charged each organization shall be that portion of the cost of operating the insurance commissioner's office, for that class of organization, for the ensuing fiscal year that is represented by the organization's portion of the receipts collected or received by all organizations within that class on business in this state during the previous calendar year: PROVIDED, That the fee shall not exceed one-eighth of one percent of receipts: PROVIDED FURTHER, That the minimum fee shall be one thousand dollars.

    (4) The commissioner shall annually, on or before June 1, calculate and bill each organization for the amount of its fee. Fees shall be due and payable no later than June 15 of each year: PROVIDED, That if the necessary financial records are not available or if the amount of the legislative appropriation is not determined in time to carry out such calculations and bill such fees within the time specified, the commissioner may use the fee factors for the prior year as the basis for the fees and, if necessary, the commissioner may impose supplemental fees to fully and properly charge the organizations. The penalties for failure to pay fees when due shall be the same as the penalties for failure to pay taxes pursuant to RCW 48.14.060. The fees required by this section are in addition to all other taxes and fees now imposed or that may be subsequently imposed.

    (5) All moneys collected shall be deposited in the insurance commissioner's regulatory account in the state treasury which is hereby created.

    (6) Unexpended funds in the insurance commissioner's regulatory account at the close of a fiscal year shall be carried forward in the insurance commissioner's regulatory account to the succeeding fiscal year and shall be used to reduce future fees. During the 2003-2005 fiscal biennium, the legislature may transfer from the insurance commissioner's regulatory account to the state general fund such amounts as reflect excess fund balance in the account.

    Sec. 23. RCW 48.03.060 and 1995 c 152 s 2 are each amended to read as follows:

    (1) Examinations within this state of any insurer or self-funded multiple employer welfare arrangement as defined in section 3 of this act domiciled or having its home offices in this state, other than a title insurer, made by the commissioner or the commissioner's examiners and employees shall, except as to fees, mileage, and expense incurred as to witnesses, be at the expense of the state.

    (2) Every other examination, whatsoever, or any part of the examination of any person domiciled or having its home offices in this state requiring travel and services outside this state, shall be made by the commissioner or by examiners designated by the commissioner and shall be at the expense of the person examined; but a domestic insurer shall not be liable for the compensation of examiners employed by the commissioner for such services outside this state.

    (3) When making an examination under this chapter, the commissioner may retain attorneys, appraisers, independent actuaries, independent certified public accountants, or other professionals and specialists as examiners, the cost of which shall be borne by the person who is the subject of the examination, except as provided in subsection (1) of this section.

    (4) The person examined and liable therefor shall reimburse the state upon presentation of an itemized statement thereof, for the actual travel expenses of the commissioner's examiners, their reasonable living expense allowance, and their per diem compensation, including salary and the employer's cost of employee benefits, at a reasonable rate approved by the commissioner, incurred on account of the examination. Per diem salary and expenses for employees examining insurers domiciled outside the state of Washington shall be established by the commissioner on the basis of the National Association of Insurance Commissioner's recommended salary and expense schedule for zone examiners, or the salary schedule established by the Washington personnel resources board and the expense schedule established by the office of financial management, whichever is higher. A domestic title insurer shall pay the examination expense and costs to the commissioner as itemized and billed by the commissioner.

    The commissioner or the commissioner's examiners shall not receive or accept any additional emolument on account of any examination.

    (5) Nothing contained in this chapter limits the commissioner's authority to terminate or suspend any examination in order to pursue other legal or regulatory action under the insurance laws of this state. Findings of fact and conclusions made pursuant to any examination are prima facie evidence in any legal or regulatory action.

    Sec. 24. RCW 48.14.0201 and 1998 c 323 s 1 are each amended to read as follows:

    (1) As used in this section, "taxpayer" means a health maintenance organization((,)) as defined in RCW 48.46.020, ((or)) a health care service contractor((,)) as defined in RCW 48.44.010, or a self-funded multiple employer welfare arrangement as defined in section 3 of this act.

    (2) Each taxpayer shall pay a tax on or before the first day of March of each year to the state treasurer through the insurance commissioner's office. The tax shall be equal to the total amount of all premiums and prepayments for health care services received by the taxpayer during the preceding calendar year multiplied by the rate of two percent.

    (3) Taxpayers shall prepay their tax obligations under this section. The minimum amount of the prepayments shall be percentages of the taxpayer's tax obligation for the preceding calendar year recomputed using the rate in effect for the current year. For the prepayment of taxes due during the first calendar year, the minimum amount of the prepayments shall be percentages of the taxpayer's tax obligation that would have been due had the tax been in effect during the previous calendar year. The tax prepayments shall be paid to the state treasurer through the commissioner's office by the due dates and in the following amounts:

    (a) On or before June 15, forty-five percent;

    (b) On or before September 15, twenty-five percent;

    (c) On or before December 15, twenty-five percent.

    (4) For good cause demonstrated in writing, the commissioner may approve an amount smaller than the preceding calendar year's tax obligation as recomputed for calculating the health maintenance organization's, health care service contractor's, self-funded multiple employer welfare arrangement's or certified health plan's prepayment obligations for the current tax year.

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

    (6) The taxes imposed in this section do not apply to:

    (a) Amounts received by any taxpayer from the United States or any instrumentality thereof as prepayments for health care services provided under Title XVIII (medicare) of the federal social security act.

    (b) Amounts received by any health care service contractor, as defined in RCW 48.44.010, as prepayments for health care services included within the definition of practice of dentistry under RCW 18.32.020.

    (c) Participant contributions to self-funded multiple employer welfare arrangements that are not taxable in this state.

    (7) Beginning January 1, 2000, the state does hereby preempt the field of imposing excise or privilege taxes upon taxpayers and no county, city, town, or other municipal subdivision shall have the right to impose any such taxes upon such taxpayers. This subsection shall be limited to premiums and payments for health benefit plans offered by health care service contractors under chapter 48.44 RCW ((and)), health maintenance organizations under chapter 48.46 RCW, and self-funded multiple employer welfare arrangements as defined in section 3 of this act. The preemption authorized by this subsection shall not impair the ability of a county, city, town, or other municipal subdivision to impose excise or privilege taxes upon the health care services directly delivered by the employees of a health maintenance organization under chapter 48.46 RCW.

    (8) The taxes imposed by this section apply to a self-funded multiple employer welfare arrangement only in the event that they are not preempted by the employee retirement income security act of 1974, as amended, 29 U.S.C. Sec. 1001 et seq. The arrangements and the commissioner shall initially request an advisory opinion from the United States department of labor or obtain a declaratory ruling from a federal court on the legality of imposing state premium taxes on these arrangements before assessing the taxes. If the taxes are not preempted by federal law, the taxes provided for in this section become effective on the first day of March following the issuance of a certificate of authority and shall not be retroactively applied to any period occurring before the arrangement receives a certificate of authority.

    NEW SECTION. Sec. 25. Sections 1 through 18 of this act constitute a new chapter in Title 48 RCW.

    NEW SECTION. Sec. 26. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

    NEW SECTION. Sec. 27. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately."

    Senator Benton spoke in favor of adoption of the striking amendment.

    The President declared the question before the Senate to be the adoption of the striking amendment by Senators Benton, Berkey and Prentice to Substitute Senate Bill No. 6112.

    The motion by Senator Benton carried and the striking amendment was adopted by voice vote.



    On motion of Senator Benton the following title amendment was adopted:

    On page 1, line 2 of the title, after "arrangements;" strike the remainder of the title and insert "amending RCW 48.02.190, 48.03.060, and 48.14.0201; adding a new section to chapter 48.43 RCW; adding a new section to chapter 48.31 RCW; adding a new section to chapter 48.99 RCW; adding a new chapter to Title 48 RCW; prescribing penalties; and declaring an emergency."


MOTION


    On motion of Senator Benton, the rules were suspended, Engrossed Substitute Senate Bill No. 6112 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

    Senator Benton spoke in favor of passage of the bill.

    The President declared the question before the Senate to be the final passage of Engrossed Substitute Senate Bill No. 6112.


ROLL CALL


    The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 6112 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 49.

    ENGROSSED SUBSTITUTE SENATE BILL NO. 6112, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


SECOND READING


    SENATE BILL NO. 6327, by Senators Esser, Haugen, Swecker, Jacobsen, Murray and Rasmussen

 

Authorizing a fee for the review of driving records. Revised for 1st Substitute: Authorizing a fee for the limited purpose of reviewing driving records of existing policyholders for changes.


MOTIONS


    On motion of Senator Horn, Substitute Senate Bill No. 6327 was substituted for Senate Bill No. 6327 and the substitute bill was placed on second reading and read the second time.

    On motion of Senator Horn, the rules were suspended, Substitute Senate Bill No. 6327 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

    Senator Esser spoke in favor of passage of the bill.


MOTION


    On motion of Senator Eide, Senator Prentice was excused.


    The President declared the question before the Senate to be the final passage of Substitute Senate Bill No. 6327.


ROLL CALL


    The Secretary called the roll on the final passage of Substitute Senate Bill No. 6327 and the bill passed the Senate by the following vote: Yeas, 48; Nays, 0; Absent, 0; Excused, 1.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 48.

     Excused: Senator Prentice - 1.

    SUBSTITUTE SENATE BILL NO. 6327, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


SECOND READING


    SENATE BILL NO. 6586, by Senators Honeyford and Prentice

 

Concerning electrical work on boilers.


    The bill was read the second time.


MOTION


    On motion of Senator Honeyford, the rules were suspended, Senate Bill No. 6586 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

    Senators Honeyford and Keiser spoke in favor of passage of the bill.

    The President declared the question before the Senate to be the final passage of Senate Bill No. 6586.


ROLL CALL


    The Secretary called the roll on the final passage of Senate Bill No. 6586 and the bill passed the Senate by the following vote: Yeas, 48; Nays, 0; Absent, 0; Excused, 1.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 48.

     Excused: Senator Prentice - 1.

    SENATE BILL NO. 6586, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


SECOND READING


    SENATE JOINT MEMORIAL NO. 8040, by Senators Shin, Jacobsen, Kastama, Thibaudeau, Berkey, Fraser, Doumit, Prentice, Horn, Kohl-Welles, Kline, Fairley, Oke, Stevens, Hale, Zarelli, T. Sheldon, B. Sheldon, Schmidt, McAuliffe, Keiser, Murray, Spanel, Brown, Eide, Rasmussen, Winsley and Benton

 

Requesting funding for veterans' health care needs.

    The bill was read the second time.


MOTION


    On motion of Senator Shin, the rules were suspended, Senate Joint Memorial No. 8040 was advanced to third reading, the second reading considered the third and the memorial was placed on final passage.

    Senator Shin spoke in favor of passage of the memorial.

    The President declared the question before the Senate to be the final passage of Senate Joint Memorial No. 8040.


ROLL CALL


    The Secretary called the roll on the final passage of Senate Joint Memorial No. 8040 and the memorial passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 49.

    SENATE JOINT MEMORIAL NO. 8040, having received the constitutional majority, was declared passed.


SECOND READING


    SENATE BILL NO. 6238, by Senators T. Sheldon, Haugen, Mulliken, Hale and Rasmussen

 

Providing for rural development. Revised for 1st Substitute: Modifying provisions for limited areas of more intensive rural development.


MOTION


    On motion of Senator Sheldon, T., Substitute Senate Bill No. 6238 was substituted for Senate Bill No. 6238 and the substitute bill was placed on second reading and read the second time.


MOTION


    Senator Kline moved that the following amendment by Senator Kline be adopted:

    On page 4, line 14, after "(c)" strike all material through line 18 and insert the following:

    "Any development or redevelopment in terms of building size, scale, use, or intensity shall be consistent with the character of the existing area or use. Development and redevelopment may include changes in use from vacant land or a previously existing use so long as the new use conforms to the requirements of this subsection."

    Senator Kline spoke in favor of adoption of the amendment.

    Senators Sheldon, T. and Haugen spoke against adoption of the amendment.

    The President declared the question before the Senate to be the adoption of the amendment by Senator Kline on page 4, line 14 to Substitute Senate Bill No. 6238.

    The motion by Senator Kline failed and the amendment was not adopted by voice vote.


MOTION


    On motion of Senator Sheldon, T., the rules were suspended, Substitute Senate Bill No. 6238 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

    Senators Sheldon, T., Haugen and Mulliken spoke in favor of passage of the bill.

    Senator Kline spoke against passage of the bill.

    The President declared the question before the Senate to be the final passage of Substitute Senate Bill No. 6238.


ROLL CALL


    The Secretary called the roll on the final passage of Substitute Senate Bill No. 6238 and the bill passed the Senate by the following vote: Yeas, 40; Nays, 9; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Carlson, Deccio, Doumit, Eide, Esser, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Prentice, Rasmussen, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Winsley and Zarelli - 40.

     Voting nay: Senators Brown, Fairley, Keiser, Kline, Kohl-Welles, McAuliffe, Poulsen, Regala and Thibaudeau - 9.

    SUBSTITUTE SENATE BILL NO. 6238, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


MOTION


    On motion of Senator Esser, the Senate advanced to the eighth order of business.


MOTION


    On motion of Senator Jacobsen, the following resolution was adopted:


SENATE RESOLUTION NO. 8695


By Senators Finkbeiner, Brown and Jacobsen


    WHEREAS, The Senate adopted permanent rules for the 2003-04 biennium under Senate Floor Resolution 8601; and

    WHEREAS, Pursuant to Senate Rule 35, the Senate has received one day's notice from Senator Jacobsen of his intent to move adoption of an amendment to Senate Rule 22 in the manner set forth below; and

    WHEREAS, The Senate desires to establish a procedure that respectfully reflects the will and intent of the electorate in those cases where the vagaries of medical or other emergencies would affect the results of decisions made on the floor of the Senate;

    NOW, THEREFORE, BE IT RESOLVED, That Rule 22 as set forth in Senate Floor Resolution 8601 is amended by adding a new subsection as follows:

    "8. If a member of the majority is going to be absent due to a health matter or other emergency, then a member of the minority may publicly announce on the floor of the senate that he or she will cast votes as he or she believes the absent member would have voted in order to avoid results that would only occur because of the unanticipated absence."

    Senators Jacobsen and Finkbeiner spoke in favor of adoption of the resolution .

    The President declared the question before the Senate to be the adoption of Senate Resolution No. 8695.

    The motion by Senator Jacobsen carried and the resolution was adopted by voice vote.


PERSONAL PRIVILEGE


    Senator Honeyford: “A point of personal privilege. Well, thank you Mr. President. One hundred-ninety-five years ago we had a very important person that was born and we just did the Brown vs Board of Education. I have a couple of quotes here I’d like to read, well more than a couple, first one I’d like to read is: ‘I would not be a slave so I’d not be a master.’ This expresses my ideas of democracy and the second one I thought very fitting for the day of Brown vs Board of Education, If I may read? Thank you Mr. President. ‘The assertion that ‘all men are created equal’ is of no practical use in effecting our separation from Great Britain; and it was placed in the Declaration not for that, but for future use.’ And we’ve seen how that’s been used. On this one-hundred ninety-fifth anniversary of Lincoln’s birthday, I think it’s appropriate that we recognize that and I do have a little question for you Mr. President, if you would? This is from Abraham Lincoln, he says ‘How many legs does a dog have if you call the tail a leg?’ I will give you the answer, he says ‘Four, because even though you call it a leg it’s still a tail.’ Anyway, thank you Mr. President.”


PERSONAL PRIVILEGE


    Senator Franklin: “A point of personal privilege. Thank you Mr. President. I don’t have the answer to that question, however, as you brought up the birth of Abraham Lincoln. There was a time in my youth days in school that every one had to learn the Gettysburg Address. I wonder how many of us who are sitting in this Chamber learned the Gettysburg Address? You all did, well great. I think maybe we should have our school children learn it along with Thanatopsis. So you see, we did not, we had very good basic and across the board at that time, but the Gettysburg Address is one piece of whatever speech or whatever we learn that has always stuck and it stands out in the point and times. Thank you Mr. President.”


PERSONAL PRIVILEGE


    Senator Kohl-Welles: “A point of personal privilege. I’m really delighted there’s so much interest here about the celebration of the fiftieth anniversary of Brown vs Board of Education and you all likely will want to show up then on April 2-3 at Seattle University where there will be a symposium held on the court decision and discussion about promoting integration in the Northwest.”



PERSONAL PRIVILEGE


    Senator Honeyford: “A point of personal privilege. Thank you Mr. President. Knowing the previous speaker’s mother is a librarian I do have a quote of Lincoln about books, unfortunately she’s not here, but it does. If I may read Mr. President. Thank you. ‘Books serve to show a man that those original thoughts of his are not very new at all!”


PERSONAL PRIVILEGE


    Senator Thibaudeau: “A point of personal privilege. Just speaking to the Gettysburg Address. When described in the newspaper following the address, which was very short. They described it as pithy. I’ve always remembered that and perhaps some of you would like to remember it too. Thank you Mr. President.”


MOTION


    On motion of Senator Esser, the Senate reverted to the sixth order of business.


SECOND READING


    SENATE BILL NO. 6336, by Senators T. Sheldon, Hargrove, Stevens, Winsley, Rasmussen and Oke

 

Extending existing employer workers' compensation group self-insurance to the logging industry.


    The bill was read the second time.


MOTION


    On motion of Senator Sheldon, T., the rules were suspended, Senate Bill No. 6336 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

    Senators Sheldon, T. and Hargrove spoke in favor of passage of the bill.

    Senator Keiser spoke against passage of the bill.

    The President declared the question before the Senate to be the final passage of Senate Bill No. 6336.


ROLL CALL


    The Secretary called the roll on the final passage of Senate Bill No. 6336 and the bill passed the Senate by the following vote: Yeas, 31; Nays, 18; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Brandland, Carlson, Deccio, Doumit, Esser, Finkbeiner, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Johnson, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Rasmussen, Roach, Schmidt, Sheahan, Sheldon, T., Shin, Stevens, Swecker, Winsley and Zarelli - 31.

     Voting nay: Senators Berkey, Brown, Eide, Fairley, Franklin, Fraser, Jacobsen, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, Poulsen, Prentice, Regala, Sheldon, B., Spanel and Thibaudeau - 18.

    SENATE BILL NO. 6336, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


SECOND READING


    SENATE BILL NO. 6274, by Senators Regala, Stevens, Hargrove and Kline

 

Changing provisions relating to serious offenses in the context of competency restoration. Revised for 1st Substitute: Changing provisions relating to competency restoration.


MOTIONS


    On motion of Senator Stevens, Second Substitute Senate Bill No. 6274 was substituted for Senate Bill No. 6274 and the second substitute bill was placed on second reading and read the second time.


MOTION


    Senator Regala moved that the following striking amendment by Senators Regala and Stevens be adopted:

    Strike everything after the enacting clause and insert the following:

    "NEW SECTION. Sec. 1. The legislature finds that recent state and federal case law requires clarification of state statutes with regard to competency evaluations and involuntary medication ordered in the context of competency restoration.

    The legislature finds that the court in Born v. Thompson, 117 Wn. App. 57 (2003) interpreted the term "nonfatal injuries" in a manner that conflicts with the stated intent of the legislature to: "(1) Clarify that it is the nature of a person's current conduct, current mental condition, history, and likelihood of committing future acts that pose a threat to public safety or himself or herself, rather than simple categorization of offenses, that should determine treatment procedures and level; ... and (3) provide additional opportunities for mental health treatment for persons whose conduct threatens himself or herself or threatens public safety and has led to contact with the criminal justice system" as stated in section 1, chapter 297, Laws of 1998. Consequently, the legislature intends to clarify that it intended "nonfatal injuries" to be interpreted in a manner consistent with the purposes of the competency restoration statutes.

    The legislature also finds that the decision in Sell v. United States, ___U.S. ____ (2003), requires a determination whether a particular criminal offense is "serious" in the context of competency restoration and the state's duty to protect the public. The legislature further finds that, in order to adequately protect the public and in order to provide additional opportunities for mental health treatment for persons whose conduct threatens themselves or threatens public safety and has led to contact with the criminal justice system in the state, the determination of those criminal offenses that are "serious" offenses must be made consistently throughout the state. In order to facilitate this consistency, the legislature intends to determine those offenses that are serious in every case as well as the standards by which other offenses may be determined to be serious. The legislature also intends to clarify that a court may, to the extent permitted by federal law and required by the Sell decision, inquire into the civil commitment status of a defendant and may be told, if known.

    Sec. 2. RCW 10.77.010 and 2000 c 94 s 12 are each amended to read as follows:

    As used in this chapter:

    (1) "Admission" means acceptance based on medical necessity, of a person as a patient.

    (2) "Commitment" means the determination by a court that a person should be detained for a period of either evaluation or treatment, or both, in an inpatient or a less-restrictive setting.

    (3) "Conditional release" means modification of a court-ordered commitment, which may be revoked upon violation of any of its terms.

    (4) "County designated mental health professional" has the same meaning as provided in RCW 71.05.020.

    (5) A "criminally insane" person means any person who has been acquitted of a crime charged by reason of insanity, and thereupon found to be a substantial danger to other persons or to present a substantial likelihood of committing criminal acts jeopardizing public safety or security unless kept under further control by the court or other persons or institutions.

    (6) "Department" means the state department of social and health services.

    (7) "Detention" or "detain" means the lawful confinement of a person, under the provisions of this chapter, pending evaluation.

    (8) "Developmental disabilities professional" means a person who has specialized training and three years of experience in directly treating or working with persons with developmental disabilities and is a psychiatrist or psychologist, or a social worker, and such other developmental disabilities professionals as may be defined by rules adopted by the secretary.

    (9) "Developmental disability" means the condition as defined in RCW 71A.10.020(3).

    (10) "Discharge" means the termination of hospital medical authority. The commitment may remain in place, be terminated, or be amended by court order.

    (11) "Furlough" means an authorized leave of absence for a resident of a state institution operated by the department designated for the custody, care, and treatment of the criminally insane, consistent with an order of conditional release from the court under this chapter, without any requirement that the resident be accompanied by, or be in the custody of, any law enforcement or institutional staff, while on such unescorted leave.

    (12) "Habilitative services" means those services provided by program personnel to assist persons in acquiring and maintaining life skills and in raising their levels of physical, mental, social, and vocational functioning. Habilitative services include education, training for employment, and therapy. The habilitative process shall be undertaken with recognition of the risk to the public safety presented by the individual being assisted as manifested by prior charged criminal conduct.

    (13) "History of one or more violent acts" means violent acts committed during: (a) The ten-year period of time prior to the filing of criminal charges; plus (b) the amount of time equal to time spent during the ten-year period in a mental health facility or in confinement as a result of a criminal conviction.

    (14) "Incompetency" means a person lacks the capacity to understand the nature of the proceedings against him or her or to assist in his or her own defense as a result of mental disease or defect.

    (15) "Indigent" means any person who is financially unable to obtain counsel or other necessary expert or professional services without causing substantial hardship to the person or his or her family.

    (16) "Individualized service plan" means a plan prepared by a developmental disabilities professional with other professionals as a team, for an individual with developmental disabilities, which shall state:

    (a) The nature of the person's specific problems, prior charged criminal behavior, and habilitation needs;

    (b) The conditions and strategies necessary to achieve the purposes of habilitation;

    (c) The intermediate and long-range goals of the habilitation program, with a projected timetable for the attainment;

    (d) The rationale for using this plan of habilitation to achieve those intermediate and long-range goals;

    (e) The staff responsible for carrying out the plan;

    (f) Where relevant in light of past criminal behavior and due consideration for public safety, the criteria for proposed movement to less-restrictive settings, criteria for proposed eventual release, and a projected possible date for release; and

    (g) The type of residence immediately anticipated for the person and possible future types of residences.

    (17) "Professional person" means:

    (a) A psychiatrist licensed as a physician and surgeon in this state who has, in addition, completed three years of graduate training in psychiatry in a program approved by the American medical association or the American osteopathic association and is certified or eligible to be certified by the American board of psychiatry and neurology or the American osteopathic board of neurology and psychiatry;

    (b) A psychologist licensed as a psychologist pursuant to chapter 18.83 RCW; or

    (c) A social worker with a master's or further advanced degree from an accredited school of social work or a degree deemed equivalent under rules adopted by the secretary.

    (18) "Release" means legal termination of the court-ordered commitment under the provisions of this chapter.

    (19) "Secretary" means the secretary of the department of social and health services or his or her designee.

    (20) "Treatment" means any currently standardized medical or mental health procedure including medication.

    (21) "Violent act" means behavior that: (a)(i) Resulted in; (ii) if completed as intended would have resulted in; or (iii) was threatened to be carried out by a person who had the intent and opportunity to carry out the threat and would have resulted in, homicide, nonfatal injuries, or substantial damage to property; or (b) recklessly creates an immediate risk of serious physical injury to another person. As used in this subsection, "nonfatal injuries" means physical pain or injury, illness, or an impairment of physical condition. "Nonfatal injuries" shall be construed to be consistent with the definition of "bodily injury," as defined in RCW 9A.04.110.

    NEW SECTION. Sec. 3. A new section is added to chapter 10.77 RCW to read as follows:

    (1) For purposes of determining whether a court may authorize involuntary medication for the purpose of competency restoration pursuant to RCW 10.77.090, a pending charge involving any one or more of the following crimes is a serious offense per se in the context of competency restoration:

    (a) Any violent offense, sex offense, serious traffic offense, and most serious offense, as those terms are defined in RCW 9.94A.030;

    (b) Any offense, except nonfelony counterfeiting offenses, included in crimes against persons in RCW 9.94A.411;

    (c) Any offense contained in chapter 9.41 RCW (firearms and dangerous weapons);

    (d) Any offense listed as domestic violence in RCW 10.99.020;

    (e) Any offense listed as a harassment offense in chapter 9A.46 RCW;

    (f) Any violation of chapter 69.50 RCW that is a class B felony; or

    (g) Any city or county ordinance or statute that is equivalent to an offense referenced in this subsection.

    (2)(a) In a particular case, a court may determine that a pending charge not otherwise defined as serious by state or federal law or by a city or county ordinance is, nevertheless, a serious offense within the context of competency restoration treatment when the conduct in the charged offense falls within the standards established in (b) of this subsection.

    (b) To determine that the particular case is a serious offense within the context of competency restoration, the court must consider the following factors and determine that one or more of the following factors creates a situation in which the offense is serious:

    (i) The charge includes an allegation that the defendant actually inflicted bodily or emotional harm on another person or that the defendant created a reasonable apprehension of bodily or emotional harm to another;

    (ii) The extent of the impact of the alleged offense on the basic human need for security of the citizens within the jurisdiction;

    (iii) The number and nature of related charges pending against the defendant;

    (iv) The length of potential confinement if the defendant is convicted; and

    (v) The number of potential and actual victims or persons impacted by the defendant's alleged acts.

    (3)(a) Any city or county may, by ordinance, determine that nonfelony offenses not otherwise defined as serious by state or federal law are nonetheless "serious offenses" within the context of competency restoration treatment when the offense falls within the standards established in (b) of this subsection.

    (b) The city or county must consider the following factors and determine that one or more of the following factors creates a situation in which the offense is serious:

    (i) The offense includes an element that the defendant actually inflicted bodily or emotional harm on another person or that the defendant created a reasonable apprehension of bodily or emotional harm to another person;

    (ii) The extent of the impact of the offense on the basic human need for security of the citizens within the jurisdiction;

    (iii) The length of potential confinement applicable to the offense; and

    (iv) The number of potential and actual victims or persons impacted by the defendant's alleged acts.

    NEW SECTION. Sec. 4. A new section is added to chapter 10.77 RCW to read as follows:

    When the court must make a determination whether to order involuntary medications for the purpose of competency restoration or for maintenance of competency, the court shall inquire, and shall be told, and to the extent that the prosecutor or defense attorney is aware, whether the defendant is the subject of a pending civil commitment proceeding or has been ordered into involuntary treatment pursuant to a civil commitment proceeding.

    Sec. 5. RCW 71.05.390 and 2000 c 94 s 9, 2000 c 75 s 6, and 2000 c 74 s 7 are each reenacted and amended to read as follows:

    Except as provided in this section, the fact of admission and all information and records compiled, obtained, or maintained in the course of providing services to either voluntary or involuntary recipients of services at public or private agencies shall be confidential.

    Information and records may be disclosed only:

    (1) In communications between qualified professional persons to meet the requirements of this chapter, in the provision of services or appropriate referrals, or in the course of guardianship proceedings. The consent of the patient, or his or her guardian, shall be obtained before information or records may be disclosed by a professional person employed by a facility unless provided to a professional person: (a) Employed by the facility; (b) who has medical responsibility for the patient's care; (c) who is a county designated mental health professional; (d) who is providing services under chapter 71.24 RCW; (e) who is employed by a state or local correctional facility where the person is confined; or (f) who is providing evaluation, treatment, or follow-up services under chapter 10.77 RCW.

    (2) When the communications regard the special needs of a patient and the necessary circumstances giving rise to such needs and the disclosure is made by a facility providing outpatient services to the operator of a care facility in which the patient resides.

    (3) When the person receiving services, or his or her guardian, designates persons to whom information or records may be released, or if the person is a minor, when his or her parents make such designation.

    (4) To the extent necessary for a recipient to make a claim, or for a claim to be made on behalf of a recipient for aid, insurance, or medical assistance to which he or she may be entitled.

    (5) For either program evaluation or research, or both: PROVIDED, That the secretary adopts rules for the conduct of the evaluation or research, or both. Such rules shall include, but need not be limited to, the requirement that all evaluators and researchers must sign an oath of confidentiality substantially as follows:

    "As a condition of conducting evaluation or research concerning persons who have received services from (fill in the facility, agency, or person) I, . . . . . . . . ., agree not to divulge, publish, or otherwise make known to unauthorized persons or the public any information obtained in the course of such evaluation or research regarding persons who have received services such that the person who received such services is identifiable.

    I recognize that unauthorized release of confidential information may subject me to civil liability under the provisions of state law.

    (6)(a) To the courts as necessary to the administration of this chapter or to a court ordering an evaluation or treatment under chapter 10.77 RCW solely for the purpose of preventing the entry of any evaluation or treatment order that is inconsistent with any order entered under this chapter.

    (b) To a court or its designee in which a motion under chapter 10.77 RCW has been made for involuntary medication of a defendant for the purpose of competency restoration.

    (c) Disclosure under this subsection is mandatory for the purpose of the health insurance portability and accountability act.

    (7) To law enforcement officers, public health officers, or personnel of the department of corrections or the indeterminate sentence review board for persons who are the subject of the records and who are committed to the custody of the department of corrections or indeterminate sentence review board which information or records are necessary to carry out the responsibilities of their office. Except for dissemination of information released pursuant to RCW 71.05.425 and 4.24.550, regarding persons committed under this chapter under RCW 71.05.280(3) and 71.05.320(2)(c) after dismissal of a sex offense as defined in RCW 9.94A.030, the extent of information that may be released is limited as follows:

    (a) Only the fact, place, and date of involuntary commitment, the fact and date of discharge or release, and the last known address shall be disclosed upon request; and

    (b) The law enforcement and public health officers or personnel of the department of corrections or indeterminate sentence review board shall be obligated to keep such information confidential in accordance with this chapter; and

    (c) Additional information shall be disclosed only after giving notice to said person and his or her counsel and upon a showing of clear, cogent, and convincing evidence that such information is necessary and that appropriate safeguards for strict confidentiality are and will be maintained. However, in the event the said person has escaped from custody, said notice prior to disclosure is not necessary and that the facility from which the person escaped shall include an evaluation as to whether the person is of danger to persons or property and has a propensity toward violence.

    (8) To the attorney of the detained person.

    (9) To the prosecuting attorney as necessary to carry out the responsibilities of the office under RCW 71.05.330(2) and 71.05.340(1)(b) and 71.05.335. The prosecutor shall be provided access to records regarding the committed person's treatment and prognosis, medication, behavior problems, and other records relevant to the issue of whether treatment less restrictive than inpatient treatment is in the best interest of the committed person or others. Information shall be disclosed only after giving notice to the committed person and the person's counsel.

    (10) To appropriate law enforcement agencies and to a person, when the identity of the person is known to the public or private agency, whose health and safety has been threatened, or who is known to have been repeatedly harassed, by the patient. The person may designate a representative to receive the disclosure. The disclosure shall be made by the professional person in charge of the public or private agency or his or her designee and shall include the dates of commitment, admission, discharge, or release, authorized or unauthorized absence from the agency's facility, and only such other information that is pertinent to the threat or harassment. The decision to disclose or not shall not result in civil liability for the agency or its employees so long as the decision was reached in good faith and without gross negligence.

    (11) To appropriate law enforcement agencies, upon request, all necessary and relevant information in the event of a crisis or emergent situation that poses a significant and imminent risk to the public. The decision to disclose or not shall not result in civil liability for the mental health service provider or its employees so long as the decision was reached in good faith and without gross negligence.

    (12) To the persons designated in RCW 71.05.425 for the purposes described in that section.

    (13) Civil liability and immunity for the release of information about a particular person who is committed to the department under RCW 71.05.280(3) and 71.05.320(2)(c) after dismissal of a sex offense as defined in RCW 9.94A.030, is governed by RCW 4.24.550.

    (14) To a patient's next of kin, guardian, or conservator, if any, in the event of death, as provided in RCW 71.05.400.

    (15) To the department of health for the purposes of determining compliance with state or federal licensure, certification, or registration rules or laws. However, the information and records obtained under this subsection are exempt from public inspection and copying pursuant to chapter 42.17 RCW.

    The fact of admission, as well as all records, files, evidence, findings, or orders made, prepared, collected, or maintained pursuant to this chapter shall not be admissible as evidence in any legal proceeding outside this chapter without the written consent of the person who was the subject of the proceeding except in a subsequent criminal prosecution of a person committed pursuant to RCW 71.05.280(3) or 71.05.320(2)(c) on charges that were dismissed pursuant to chapter 10.77 RCW due to incompetency to stand trial or in a civil commitment proceeding pursuant to chapter 71.09 RCW. The records and files maintained in any court proceeding pursuant to this chapter shall be confidential and available subsequent to such proceedings only to the person who was the subject of the proceeding or his or her attorney. In addition, the court may order the subsequent release or use of such records or files only upon good cause shown if the court finds that appropriate safeguards for strict confidentiality are and will be maintained.

    NEW SECTION. Sec. 6. The department of social and health services shall study and identify in its budget request to the office of financial management the need, options, and plans to address the increasing need for capacity in the forensic units of the state hospitals.

    NEW SECTION. Sec. 7. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

    NEW SECTION. Sec. 8. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately."

    Senators Regala and Stevens spoke in favor of adoption of the amendment.

    The President declared the question before the Senate to be the adoption of the striking amendment by Senators Regala and Stevens to Second Substitute Senate Bill No. 6274.

    The motion by Senator Regala carried and the striking amendment was adopted by voice vote.


    On motion of Senator Regala the following title amendment was adopted:

    On page 1, line 1 of the title, after "restoration;" strike the remainder of the title and insert "amending RCW 10.77.010; reenacting and amending RCW 71.05.390; adding new sections to chapter 10.77 RCW; creating new sections; and declaring an emergency."


MOTION


    On motion of Senator Stevens, the rules were suspended, Engrossed Second Substitute Senate Bill No. 6274 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

    Senator Regala spoke in favor of passage of the bill.

    The President declared the question before the Senate to be the final passage of Engrossed Second Substitute Senate Bill No. 6274.


ROLL CALL


    The Secretary called the roll on the final passage of Engrossed Second Substitute Senate Bill No. 6274 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 49.

    ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 6274, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


SECOND READING


    SENATE BILL NO. 6141, by Senators Winsley, Kastama, Oke, Franklin, Swecker and Schmidt; by request of Department of Revenue and Department of Veterans Affairs

 

Clarifying the property taxation of vehicles carrying exempt licenses.


    The bill was read the second time.


MOTION


    On motion of Senator Winsley, the rules were suspended, Senate Bill No. 6141 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

    Senator Winsley spoke in favor of passage of the bill.

    The President declared the question before the Senate to be the final passage of Senate Bill No. 6141.


ROLL CALL


    The Secretary called the roll on the final passage of Senate Bill No. 6141 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 49.

     SENATE BILL NO. 6141, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


MOTION


    At 3:20 p.m., on motion of Senator Esser, the Senate was declared to be at ease subject to the Call of the President for purpose of a Rules Committee meeting.


    The Senate was called to order at 4:08 p.m. by President Owen.


PERSONAL PRIVILEGE


    Senator Keiser: “A point of personal privilege. Thank you Mr. President. Would you please rule on whether a fan on the floor is acceptable to the President, because it’s certainly not to this individual?”


REPLY BY THE PRESIDENT


    President Owen: “The answer to Senator Keiser’s inquiry is that normally no, they are not within the decorum of the Senate. We have had Senators who have needed them for a particular medical-type reasons and we have allowed that. So we know that there’s a lot of medical reasons that Senator Hargrove may have where a fan is required. We may want to get a doctor’s prescription.”


PERSONAL PRIVILEGE


    Senator Keiser: “Thank you Mr. President, to continue perhaps reading Reed’s Rules, Rule number 50: ‘Decorum-It will be seen that the rights and duties of members are somewhat difficult unless we have general comity.’ Perhaps a medical excuse could be provided.”


REPLY BY THE PRESIDENT


    President Owen: “The President believes that there are certain exceptions, in all seriousness, where we need to make exceptions to very strict rules of decorum to accommodate needs of the members, but when it becomes something that is frivolous or for fun and frivolity that is not within the decorum.”


PERSONAL PRIVILEGE


    Senator McCaslin: “A point of personal privilege. The reason I have a fan is I sweat like a horse and I got a prescription from a vet. I’d be happy to show it to you anytime.”


SECOND READING


    SENATE BILL NO. 6180, by Senators Franklin, Eide, Prentice, Kline, Fraser, Hargrove, B. Sheldon, Kohl-Welles, Fairley, Kastama, Regala, McAuliffe, Keiser, Shin, Jacobsen, T. Sheldon, Spanel, Roach and Rasmussen

 

Prohibiting the use of genetic information in employment decisions.


    The bill was read the second time.


MOTION


    Senator Franklin moved that the following amendment by Senator Franklin be adopted:

    On page 1, line 14, after "medical examination." insert ""Genetic information" for purposes of this chapter, does not include (1) routine physical measurements, including chemical, blood, and urine analysis, unless conducted purposefully to diagnose genetic or inherited characteristics; and (2) results from tests for abuse of alcohol or drugs, or for the presence of HIV."

    Senators Franklin and Honeyford spoke in favor of adoption of the amendment.

    The President declared the question before the Senate to be the adoption of the amendment by Senator Franklin on page 1, line 14 to Senate Bill No. 6180.

    The motion by Senator Franklin carried and the amendment was adopted by voice vote.


MOTION


    On motion of Senator Honeyford, the rules were suspended, Engrossed Senate Bill No. 6180 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

    The President declared the question before the Senate to be the final passage of Engrossed Senate Bill No. 6180.


ROLL CALL


    The Secretary called the roll on the final passage of Engrossed Senate Bill No. 6180 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 49.

     ENGROSSED SENATE BILL NO. 6180, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


MOTION


    On motion of Senator Esser, the Senate advanced to the seventh order of business.


THIRD READING


    ENGROSSED SUBSTITUTE SENATE BILL NO. 5536, by Senate Committee on Judiciary (originally sponsored by Senators Finkbeiner, Reardon, Roach, Hale, Horn, Benton, Morton, Hewitt, Schmidt, Kastama, Sheahan, Mulliken, Johnson, Parlette, Stevens, West and Esser)

 

Resolving claims relating to condominium construction.


MOTION


    On motion of Senator Esser, the rules were suspended, Engrossed Substitute Senate Bill No. 5536 was returned to second reading and read a second time.


MOTION


    Senator Esser moved that the following striking amendment by Senator Esser be adopted:

    Strike everything after the enacting clause and insert the following:

    "NEW SECTION. Sec. 1. A new section is added to chapter 64.34 RCW to read as follows:

    (1) The legislature finds, declares, and determines that:

    (a) Washington's cities and counties under the growth management act are required to encourage urban growth in urban growth areas at densities that accommodate twenty-year growth projections;

    (b) One of the growth management act's planning goals is to encourage the availability of affordable housing for all residents of the state and promote a variety of housing types;

    (c) Quality condominium construction needs to be encouraged to achieve growth management act mandated urban densities and ensure that residents of the state, particularly in urban growth areas, have a broad range of ownership choices.

    (2) It is the intent of the legislature that this act implement changes in the condominium act that encourage insurance carriers to provide liability insurance for condominium builders by: Providing for arbitration of disputes; ensuring that material facts and claims are presented as fully as possible in arbitration proceedings; confining judicial review of arbitration decisions to the arbitration record, except in very limited circumstances; requiring mandatory arbitration of disputes involving construction defects; and eliminating litigation over minor or insignificant problems, while continuing to protect consumers' legitimate claims regarding condominium construction.

    (3) It is the further intent of the legislature that these changes in the condominium act ensure that a broad range of affordable homeownership opportunities continue to be available to the residents of the state and also assist cities' and counties' efforts to achieve the density mandates of the growth management act.

    Sec. 2. RCW 64.34.100 and 1989 c 43 s 1-113 are each amended to read as follows:

    (1) The remedies provided by this chapter shall be liberally administered to the end that the aggrieved party is put in as good a position as if the other party had fully performed. However, consequential, special, or punitive damages may not be awarded except as specifically provided in this chapter or by other rule of law.

    (2) Any right or obligation declared by this chapter is enforceable by arbitration or judicial proceeding. Arbitration may be provided for in the declaration or by agreement of the parties. However, all claims arising under or relating to RCW 64.34.443, 64.34.445, or 64.34.450 shall be subject to mandatory arbitration as set forth in this section. In any arbitration of claims arising under or relating to RCW 64.34.443, 64.34.445, or 64.34.450, the arbitrator may award reasonable attorneys' fees to the substantially prevailing party as set forth in this section.

    (3) Mandatory arbitration for claims arising under or relating to RCW 64.34.443, 64.34.445, or 64.34.450 shall comply with the following minimum standards:

    (a) All disputes shall be heard by one qualified arbitrator, unless the parties agree that three arbitrators shall be used. When three arbitrators are used, one shall be appointed by each of the disputing parties and the first two arbitrators shall appoint the third, who will chair the panel. The parties shall select the identity and number of the arbitrator(s) after service of the request, notice, or petition to arbitrate. If, within thirty days after service of the request, notice, or petition to arbitrate, the parties fail to agree on an arbitrator or the required number of arbitrators fail to be appointed, then an arbitrator shall be appointed under RCW 7.04.050 by the presiding judge of the superior court of the county in which the condominium is located;

    (b) In any arbitration, at least one arbitrator must be a lawyer or retired judge. Any additional arbitrator must be either a lawyer or retired judge or a person who has experience with construction and engineering standards and practices, written construction warranties, or construction dispute resolution and a person shall not serve as an arbitrator in any arbitration in which that person has any financial or personal interest;

    (c) The arbitration hearing must be conducted in a manner that permits full, fair, and expeditious presentation of the case by both parties. The arbitrator shall be bound by the law of Washington state. Parties may be, but are not required to be, represented by attorneys. The arbitrator may permit discovery to ensure a fair hearing but may limit the scope or manner of discovery for good cause to avoid excessive delay and costs to the parties. Unless the parties agree otherwise or the arbitrator grants an extension for good cause, the arbitration hearing shall be completed within six months of the service of the request, notice, or petition to arbitrate or, when applicable the service of the list of defects in accordance with RCW 64.50.030;

    (d) Except as otherwise set forth in this section, arbitration shall be conducted under chapter 7.04 RCW, unless the parties elect to use the condominium or construction dispute resolution rules of the American arbitration association, which are permitted to the extent not inconsistent with this section. The expenses of witnesses including expert witnesses shall be paid by the party producing the witnesses. Each party shall pay its own reasonable attorneys' fees unless the parties agree otherwise or unless the arbitrator awards reasonable attorneys' fees or any part thereof to any specified party or parties. All other expenses of arbitration shall be borne equally by the parties, unless they agree otherwise or unless the arbitrator awards such expenses or any part thereof to any specified party or parties; and

    (e) Service of a request, notice, or petition to arbitrate commences an arbitration for purposes of RCW 64.34.452.

    (4) Within twenty days after the arbitration decision and award is served on the parties, any aggrieved party may file with the clerk of the superior court in which the condominium is located a written notice of appeal and request for a trial in the superior court. Such a trial shall thereupon be held and shall include a right to a jury, if demanded. Such a trial shall be commenced on an expedited schedule within ninety days of the filing of the notice of appeal.

    (a) Judicial review of an arbitration decision and award shall be confined to the record created by the arbitrator, except that, upon order of the court, the record may be supplemented by additional evidence or claim only if the additional evidence or claim relates to:

    (i) Claims for disqualification of an arbitrator, when such claims were unknown to the appealing party at the time of arbitration;

    (ii) Claims regarding matters that were improperly excluded from the arbitration record after being offered by the appealing party;

    (iii) Claims regarding matters that were outside the jurisdiction of the arbitrator; or

    (iv) Material facts regarding claims that have been arbitrated and that: (A) Were unknown at the time of the arbitration hearing by the party proposing their introduction where such a lack of knowledge was not the result of the party's prior refusal or failure to exercise reasonable diligence in the investigation of its claims or defenses; and (B) could not have been reasonably discovered at the time of arbitration where the failure to discover was not intentional or due to inexcusable neglect.

    (b) Except when the court has authorized the record to be supplemented under this subsection (4), the parties may not conduct pretrial discovery. When pretrial discovery is permitted, the court shall, in its order regarding supplementing the record, establish the scope, timing, and extent of permissible discovery and shall require the moving party to disclose before trial the specific additional evidence they intend to offer.

    (c) Offers of compromise and the assessment of costs and reasonable attorneys' fees shall be governed by RCW 7.06.050 and 7.06.060.

    (d) The arbitration decision shall be in writing and must set forth findings of fact and conclusions of law that support the decision.

    (e) Unless the parties agree otherwise, a complete verbatim record of the arbitration hearing shall be maintained that includes all exhibits offered by the parties. Video recording of the arbitration hearing is permissible.

    (f) Within forty-five days after entry of an order to submit the record, or within such other time as the court allows or as the parties agree, the arbitrator shall submit to the court a certified copy of the record for judicial review of the decision, except that the petitioner shall prepare at the petitioner's expense and submit the verbatim hearing record required under (e) of this subsection. If the parties agree, or upon order of the court, the record shall be shortened or summarized to avoid reproduction and transcription of portions of the record that are duplicative or not relevant to the issues to be reviewed by the court. The petitioner shall pay the arbitrator the cost of preparing the record before the arbitrator submits the record to the court. Failure by the petitioner to timely pay the arbitrator relieves the arbitrator of responsibility to submit the record and is grounds for dismissal of the petition. If the relief sought by the petitioner is granted in whole or in part, the court shall equitably assess the costs of preparing the record among the parties. In assessing costs, the court shall take into account the extent to which each party prevailed and the reasonableness of the parties' conduct in agreeing or not agreeing to shorten or summarize the record under this subsection (4)(f).

    (g) Unless the parties agree otherwise, an appeal of an arbitrator's decision is an appeal of the full and complete decision.

    Sec. 3. RCW 64.34.216 and 1992 c 220 s 7 are each amended to read as follows:

    (1) The declaration for a condominium must contain:

    (a) The name of the condominium, which must include the word "condominium" or be followed by the words "a condominium," and the name of the association;

    (b) A legal description of the real property included in the condominium;

    (c) A statement of the number of units which the declarant has created and, if the declarant has reserved the right to create additional units, the number of such additional units;

    (d) The identifying number of each unit created by the declaration and a description of the boundaries of each unit if and to the extent they are different from the boundaries stated in RCW 64.34.204(1);

    (e) With respect to each existing unit:

    (i) The approximate square footage;

    (ii) The number of bathrooms, whole or partial;

    (iii) The number of rooms designated primarily as bedrooms;

    (iv) The number of built-in fireplaces; and

    (v) The level or levels on which each unit is located.

    The data described in (ii), (iii), and (iv) of this subsection (1)(e) may be omitted with respect to units restricted to nonresidential use;

    (f) The number of parking spaces and whether covered, uncovered, or enclosed;

    (g) The number of moorage slips, if any;

    (h) A description of any limited common elements, other than those specified in RCW 64.34.204 (2) and (4), as provided in RCW 64.34.232(2)(j);

    (i) A description of any real property which may be allocated subsequently by the declarant as limited common elements, other than limited common elements specified in RCW 64.34.204 (2) and (4), together with a statement that they may be so allocated;

    (j) A description of any development rights and other special declarant rights under RCW 64.34.020(29) reserved by the declarant, together with a description of the real property to which the development rights apply, and a time limit within which each of those rights must be exercised;

    (k) If any development right may be exercised with respect to different parcels of real property at different times, a statement to that effect together with: (i) Either a statement fixing the boundaries of those portions and regulating the order in which those portions may be subjected to the exercise of each development right, or a statement that no assurances are made in those regards; and (ii) a statement as to whether, if any development right is exercised in any portion of the real property subject to that development right, that development right must be exercised in all or in any other portion of the remainder of that real property;

    (l) Any other conditions or limitations under which the rights described in (j) of this subsection may be exercised or will lapse;

    (m) An allocation to each unit of the allocated interests in the manner described in RCW 64.34.224;

    (n) Any restrictions in the declaration on use, occupancy, or alienation of the units;

    (o) A cross-reference by recording number to the survey map and plans for the units created by the declaration; and

    (p) All matters required or permitted by RCW 64.34.220 through 64.34.232, 64.34.256, 64.34.260, 64.34.276, ((and)) 64.34.308(4), and 64.34.450.

    (2) All amendments to the declaration shall contain a cross-reference by recording number to the declaration and to any prior amendments thereto. All amendments to the declaration adding units shall contain a cross-reference by recording number to the survey map and plans relating to the added units and set forth all information required by RCW 64.34.216(1) with respect to the added units.

    (3) The declaration may contain any other matters the declarant deems appropriate.

    Sec. 4. RCW 64.34.324 and 1992 c 220 s 16 are each amended to read as follows:

    (1) Unless provided for in the declaration, the bylaws of the association shall provide for:

    (a) The number, qualifications, powers and duties, terms of office, and manner of electing and removing the board of directors and officers and filling vacancies;

    (b) Election by the board of directors of such officers of the association as the bylaws specify;

    (c) Which, if any, of its powers the board of directors or officers may delegate to other persons or to a managing agent;

    (d) Which of its officers may prepare, execute, certify, and record amendments to the declaration on behalf of the association; ((and))

    (e) The method of amending the bylaws; and

    (f) A statement regarding the decision-making standards to which the board of directors or officers will be held.

    (2) Subject to the provisions of the declaration, the bylaws may provide for any other matters the association deems necessary and appropriate.

    (3) In determining the qualifications of any officer or director of the association, notwithstanding the provision of RCW 64.34.020(32) the term "unit owner" in such context shall, unless the declaration or bylaws otherwise provide, be deemed to include any director, officer, partner in, or trustee of any person, who is, either alone or in conjunction with another person or persons, a unit owner. Any officer or director of the association who would not be eligible to serve as such if he or she were not a director, officer, partner in, or trustee of such a person shall be disqualified from continuing in office if he or she ceases to have any such affiliation with that person, or if that person would have been disqualified from continuing in such office as a natural person.

    Sec. 5. RCW 64.34.410 and 2002 c 323 s 10 are each amended to read as follows:

    (1) A public offering statement shall contain the following information:

    (a) The name and address of the condominium;

    (b) The name and address of the declarant;

    (c) The name and address of the management company, if any;

    (d) The relationship of the management company to the declarant, if any;

    (e) A list of up to the five most recent condominium projects completed by the declarant or an affiliate of the declarant within the past five years, including the names of the condominiums, their addresses, and the number of existing units in each. For the purpose of this section, a condominium is "completed" when any one unit therein has been rented or sold;

    (f) The nature of the interest being offered for sale;

    (g) A brief description of the permitted uses and use restrictions pertaining to the units and the common elements;

    (h) A brief description of the restrictions, if any, on the renting or leasing of units by the declarant or other unit owners, together with the rights, if any, of the declarant to rent or lease at least a majority of units;

    (i) The number of existing units in the condominium and the maximum number of units that may be added to the condominium;

    (j) A list of the principal common amenities in the condominium which materially affect the value of the condominium and those that will or may be added to the condominium;

    (k) A list of the limited common elements assigned to the units being offered for sale;

    (l) The identification of any real property not in the condominium, the owner of which has access to any of the common elements, and a description of the terms of such access;

    (m) The identification of any real property not in the condominium to which unit owners have access and a description of the terms of such access;

    (n) The status of construction of the units and common elements, including estimated dates of completion if not completed;

    (o) The estimated current common expense liability for the units being offered;

    (p) An estimate of any payment with respect to the common expense liability for the units being offered which will be due at closing;

    (q) The estimated current amount and purpose of any fees not included in the common expenses and charged by the declarant or the association for the use of any of the common elements;

    (r) Any assessments which have been agreed to or are known to the declarant and which, if not paid, may constitute a lien against any units or common elements in favor of any governmental agency;

    (s) The identification of any parts of the condominium, other than the units, which any individual owner will have the responsibility for maintaining;

    (t) If the condominium involves a conversion condominium, the information required by RCW 64.34.415;

    (u) Whether timesharing is restricted or prohibited, and if restricted, a general description of such restrictions;

    (v) A list of all development rights reserved to the declarant and all special declarant rights reserved to the declarant, together with the dates such rights must terminate, and a copy of or reference by recording number to any recorded transfer of a special declarant right;

    (w) A description of any material differences in terms of furnishings, fixtures, finishes, and equipment between any model unit available to the purchaser at the time the agreement for sale is executed and the unit being offered;

    (x) Any liens on real property to be conveyed to the association required to be disclosed pursuant to RCW 64.34.435(2)(b);

    (y) A list of any physical hazards known to the declarant which particularly affect the condominium or the immediate vicinity in which the condominium is located and which are not readily ascertainable by the purchaser;

    (z) A brief description of any construction warranties to be provided to the purchaser and a brief statement as to whether any express written warranty replaces or other document excludes or modifies the implied warranties of quality provided in RCW 64.34.445;

    (aa) Any building code violation citations received by the declarant in connection with the condominium which have not been corrected;

    (bb) A statement of any unsatisfied judgments or pending suits against the association, a statement of the status of any pending suits material to the condominium of which the declarant has actual knowledge, and a statement of any litigation brought by an owners' association, unit owner, or governmental entity in which the declarant or any affiliate of the declarant has been a defendant, arising out of the construction, sale, or administration of any condominium within the previous five years, together with the results thereof, if known;

    (cc) Any rights of first refusal to lease or purchase any unit or any of the common elements;

    (dd) The extent to which the insurance provided by the association covers furnishings, fixtures, and equipment located in the unit;

    (ee) A notice which describes a purchaser's right to cancel the purchase agreement or extend the closing under RCW 64.34.420, including applicable time frames and procedures;

    (ff) Any reports or statements required by RCW 64.34.415 or 64.34.440(6)(a). RCW 64.34.415 shall apply to the public offering statement of a condominium in connection with which a final certificate of occupancy was issued more than sixty calendar months prior to the preparation of the public offering statement whether or not the condominium is a conversion condominium as defined in RCW 64.34.020(10);

    (gg) A list of the documents which the prospective purchaser is entitled to receive from the declarant before the rescission period commences;

    (hh) A notice which states: A purchaser may not rely on any representation or express warranty unless it is contained in the public offering statement or made in writing signed by the declarant or by any person identified in the public offering statement as the declarant's agent;

    (ii) A notice which states: This public offering statement is only a summary of some of the significant aspects of purchasing a unit in this condominium and the condominium documents are complex, contain other important information, and create binding legal obligations. You should consider seeking the assistance of legal counsel;

    (jj) Any other information and cross-references which the declarant believes will be helpful in describing the condominium to the recipients of the public offering statement, all of which may be included or not included at the option of the declarant;

    (kk) A notice that addresses compliance or noncompliance with the housing for older persons act of 1995, P.L. 104-76, as enacted on December 28, 1995; and

    (ll) A notice that is substantially in the form required by RCW 64.50.050.

    (2) The public offering statement shall include copies of each of the following documents: The declaration, the survey map and plans, the articles of incorporation of the association, bylaws of the association, rules and regulations, if any, current or proposed budget for the association, and the balance sheet of the association current within ninety days if assessments have been collected for ninety days or more.

    If any of the foregoing documents listed in this subsection are not available because they have not been executed, adopted, or recorded, drafts of such documents shall be provided with the public offering statement, and, before closing the sale of a unit, the purchaser shall be given copies of any material changes between the draft of the proposed documents and the final documents.

    (3) The disclosures required by subsection (1)(g), (k), (s), (u), (v), (z), and (cc) of this section shall also contain a reference to specific sections in the condominium documents which further explain the information disclosed.

    (4) The disclosures required by subsection (1)(z), (ee), (hh), (ii), and (ll) of this section shall be located at the top of the first page of the public offering statement and be typed or printed in ten-point bold face type size.

    (5) A declarant shall promptly amend the public offering statement to reflect any material change in the information required by this section.

    Sec. 6. RCW 64.34.425 and 1992 c 220 s 23 are each amended to read as follows:

    (1) Except in the case of a sale where delivery of a public offering statement is required, or unless exempt under RCW 64.34.400(2), a unit owner shall furnish to a purchaser before execution of any contract for sale of a unit, or otherwise before conveyance, a resale certificate, signed by an officer or authorized agent of the association and based on the books and records of the association and the actual knowledge of the person signing the certificate, containing:

    (a) A statement disclosing any right of first refusal or other restraint on the free alienability of the unit contained in the declaration;

    (b) A statement setting forth the amount of the monthly common expense assessment and any unpaid common expense or special assessment currently due and payable from the selling unit owner and a statement of any special assessments that have been levied against the unit which have not been paid even though not yet due;

    (c) A statement, which shall be current to within forty-five days, of any common expenses or special assessments against any unit in the condominium that are past due over thirty days;

    (d) A statement, which shall be current to within forty-five days, of any obligation of the association which is past due over thirty days;

    (e) A statement of any other fees payable by unit owners;

    (f) A statement of any anticipated repair or replacement cost in excess of five percent of the annual budget of the association that has been approved by the board of directors;

    (g) A statement of the amount of any reserves for repair or replacement and of any portions of those reserves currently designated by the association for any specified projects;

    (h) The annual financial statement of the association, including the audit report if it has been prepared, for the year immediately preceding the current year.

    (i) A balance sheet and a revenue and expense statement of the association prepared on an accrual basis, which shall be current to within one hundred twenty days;

    (j) The current operating budget of the association;

    (k) A statement of any unsatisfied judgments against the association and the status of any pending suits or legal proceedings in which the association is a plaintiff or defendant;

    (l) A statement describing any insurance coverage provided for the benefit of unit owners;

    (m) A statement as to whether there are any alterations or improvements to the unit or to the limited common elements assigned thereto that violate any provision of the declaration;

    (n) A statement of the number of units, if any, still owned by the declarant, whether the declarant has transferred control of the association to the unit owners, and the date of such transfer;

    (o) A statement as to whether there are any violations of the health or building codes with respect to the unit, the limited common elements assigned thereto, or any other portion of the condominium;

    (p) A statement of the remaining term of any leasehold estate affecting the condominium and the provisions governing any extension or renewal thereof; and

    (q) A copy of the declaration, the bylaws, the rules or regulations of the association, and any other information reasonably requested by mortgagees of prospective purchasers of units. Information requested generally by the federal national mortgage association, the federal home loan bank board, the government national mortgage association, the veterans administration and the department of housing and urban development shall be deemed reasonable, provided such information is reasonably available to the association.

    (2) The association, within ten days after a request by a unit owner, and subject to payment of any fee imposed pursuant to RCW 64.34.304(1)(l), shall furnish a resale certificate signed by an officer or authorized agent of the association and containing the information necessary to enable the unit owner to comply with this section. For the purposes of this chapter, a reasonable charge for the preparation of a resale certificate may not exceed one hundred fifty dollars. The association may charge a unit owner a nominal fee for updating a resale certificate within six months of the unit owner's request. The unit owner shall also sign the certificate but the unit owner is not liable to the purchaser for any erroneous information provided by the association and included in the certificate unless and to the extent the unit owner had actual knowledge thereof.

    (3) A purchaser is not liable for any unpaid assessment or fee against the unit as of the date of the certificate greater than the amount set forth in the certificate prepared by the association unless and to the extent such purchaser had actual knowledge thereof. A unit owner is not liable to a purchaser for the failure or delay of the association to provide the certificate in a timely manner, but the purchaser's contract is voidable by the purchaser until the certificate has been provided and for five days thereafter or until conveyance, whichever occurs first.

    Sec. 7. RCW 64.34.445 and 1992 c 220 s 26 are each amended to read as follows:

    (1) A declarant and any dealer warrants that a unit will be in at least as good condition at the earlier of the time of the conveyance or delivery of possession as it was at the time of contracting, reasonable wear and tear and damage by casualty or condemnation excepted.

    (2)(a) A declarant and any dealer impliedly warrants that a unit and the common elements in the condominium are suitable for the ordinary uses of real estate of its type and that any improvements made or contracted for by such declarant or dealer will be:

    (((a))) (i) Free from defective materials; ((and

    (b))) (ii) Constructed in accordance with sound engineering and construction standards((, and));

    (iii) Constructed in a workmanlike manner; and

    (iv) Constructed in compliance with all laws then applicable to such improvements.

    (b) The implied warranty is applicable only to the extent that a failure under (a) of this subsection: (i) Has had or will have a materially adverse effect on the structural integrity of a unit or common element; (ii) has resulted or will result in a unit or common element being unsafe in any material respect when used for its intended purpose; (iii) would have substantially reduced the fair market value of the unit on the date of initial conveyance by the declarant or dealer had the defect been disclosed at the date of initial conveyance; or (iv) materially impairs or will impair the use of a unit or common element for its intended purpose.

    (3) A declarant and any dealer warrants to a purchaser of a unit that may be used for residential use that an existing use, continuation of which is contemplated by the parties, does not violate applicable law at the earlier of the time of conveyance or delivery of possession.

    (4) Warranties imposed by this section may be replaced, excluded, or modified as specified in RCW 64.34.450.

    (5) For purposes of this section, improvements made or contracted for by an affiliate of a declarant, as defined in RCW 64.34.020(1), are made or contracted for by the declarant.

    (6) Any conveyance of a unit transfers to the purchaser all of the declarant's implied warranties of quality, as they may be replaced, excluded, or modified by an express written warranty as specified in RCW 64.34.450.

    Sec. 8. RCW 64.34.450 and 1989 c 43 s 4-113 are each amended to read as follows:

    (1) ((Except as limited by subsection (2) of this section)) For units intended for nonresidential use, implied warranties of quality:

    (a) May be excluded or modified by written agreement of the parties; and

    (b) Are excluded by written expression of disclaimer, such as "as is," "with all faults," or other language which in common understanding calls the buyer's attention to the exclusion of warranties.

    (2) ((With respect to a purchaser of a unit that may be occupied)) For units intended for residential use, no ((general)) disclaimer of implied warranties of quality is effective, ((but a)) except that:

    (a) A declarant ((and any)) or dealer may disclaim liability in ((an)) a separate recorded instrument signed by the purchaser for a specified defect or specified failure to comply with applicable law, if: (i) The specific defect or failure ((entered into and became)) is known to exist at the time of disclosure; (ii) the disclaimer specifically describes the defect or failure; (iii) the disclaimer includes a statement as to the effect of the defect or failure; and (iv) the disclaimer is clearly a part of the basis of the bargain; and/or

    (b) A declarant or dealer may replace or modify the implied warranties of quality provided under RCW 64.34.445 with an express written warranty of quality only if each of the following conditions are met:

    (i) The express written warranty does not reduce protections provided to the purchaser by the implied warranty set forth in RCW 64.34.445;

    (ii) The disclosure required by RCW 64.34.410(1)(z) is contained in a public offering statement as provided by RCW 64.34.410(3) and such disclosure is set forth in twelve-point bold face type in the declaration or amendment thereto;

    (iii) The express written warranty is set forth in full in the declaration, an amendment to the declaration, or another recorded document; and

    (iv) The unit purchaser who initially acquires the unit from the declarant expressly acknowledges in a recorded written conveyance or another recorded written instrument that the implied warranties of quality have been replaced or modified by the express written warranty.

    Sec. 9. RCW 64.34.452 and 2002 c 323 s 11 are each amended to read as follows:

    (1) A judicial proceeding or arbitration for breach of any obligations arising under or relating to RCW 64.34.443 ((and)), 64.34.445, and 64.34.450 must be commenced within four years after the cause of action accrues: PROVIDED, That the period for commencing an action for a breach accruing pursuant to subsection (2)(b) of this section shall not expire prior to one year after termination of the period of declarant control, if any, under RCW 64.34.308(4). Such periods may not be reduced by either oral or written agreement, or through the use of contractual claims or notice procedures that require the filing or service of any claim or notice prior to the expiration of the period specified in this section. Arbitration under this chapter shall be deemed commenced when a request, notice, or petition is served on a party that is necessary to the resolution of the claim.

    (2) Subject to subsection (3) of this section, a cause of action or breach of warranty of quality, regardless of the purchaser's lack of knowledge of the breach, accrues:

    (a) As to a unit, the date the purchaser to whom the warranty is first made enters into possession if a possessory interest was conveyed or the date of acceptance of the instrument of conveyance if a nonpossessory interest was conveyed; and

    (b) As to each common element, at the latest of (i) the date the first unit in the condominium was conveyed to a bona fide purchaser, (ii) the date the common element was completed, or (iii) the date the common element was added to the condominium.

    (3) If a warranty of quality explicitly extends to future performance or duration of any improvement or component of the condominium, the cause of action accrues at the time the breach is discovered or at the end of the period for which the warranty explicitly extends, whichever is earlier.

    (4) If a written notice of claim is served under RCW 64.50.020 within the time prescribed for the filing of an action under this chapter, the statutes of limitation in this chapter and any applicable statutes of repose for construction-related claims are tolled until sixty days after the period of time during which the filing of an action is barred under RCW 64.50.020.

    NEW SECTION. Sec. 10. A new section is added to chapter 64.34 RCW to read as follows:

    (1) Effective January 1, 2006, all condominiums shall be inspected by a qualified third party independent inspector during the course of construction. Condominiums inspected that are granted a certification of inspection shall be presumed to be constructed in accordance with sound engineering and construction standards; constructed in a workmanlike manner; and constructed in compliance with all laws then applicable to improvements.

    (2)(a) The inspections shall be performed by qualified inspectors. To be qualified, the person performing the inspection shall have at least five years of verifiable experience in construction; have certification as a building inspector, combination inspector or combination dwelling inspector from the international code council; and have successfully passed the technical written examination promulgated by the international code council for those certification categories.

    (b) Nothing in this section, as it relates to qualified inspectors, shall be construed to alter the requirements for licensure, or the jurisdiction, authority, or scope of practice of architects, professional engineers, or general contractors.

    (c) A qualified inspector shall be free from any interference or influence relating to the inspections under this chapter. An inspector shall not engage in any design or construction activities relating to the condominium for which the inspector is engaged to inspect. Nor may a qualified inspector be engaged by the declarant or agents of the declarant in any other activity except qualified inspections.

    (3)(a) Any inspection during the course of construction of a condominium shall include at a minimum the following:

    (i) An independent review of all plans and specifications for the condominium to determine compliance with all laws then applicable to improvements and to ensure that the plans and specifications are in accordance with sound engineering and construction standards.

    (ii) An independent periodic review of all construction activities during the course of construction to ensure that the condominium has been constructed in a workmanlike manner.

    (b) A qualified inspector shall prepare a certificate certifying that the condominium has been inspected during the course of construction in compliance with this chapter. The certificate of inspection shall be provided to each purchaser at or prior to closing of the sale of a unit.

    (4)(a) A qualified inspector shall have no monetary liability and no cause of action for damages shall arise against a qualified inspector for the inspections required by this chapter.

    (b) The immunity provided under this section does not inure to the benefit of the qualified inspector for damages caused to the declarant solely by the negligence or willful misconduct of the qualified inspector resulting from the provision of services under the contract with the declarant.

    (c) Except for qualified inspectors, this section shall not relieve from, excuse, or lessen in any manner, the responsibility or liability of any person, company, contractor, builder, developer, architect, engineer, designer, or other individual or entity who develops, improves, owns, operates, or manages any condominium for any damages to persons or property caused by construction or design defects. The fact that an inspection by a qualified inspector has taken place may be introduced as evidence in a construction defect action, including any reports or other items generated by the qualified inspector.

    NEW SECTION. Sec. 11. Sections 3, 5, and 8 of this act apply only to condominiums created by declarations recorded on or after July 1, 2004.

    NEW SECTION. Sec. 12. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

    NEW SECTION. Sec. 13. This act takes effect July 1, 2004."


MOTION


    Senator Winsley moved that the following amendment to the striking amendment by Senator Winsley be adopted:

    On page 2, line 10 of the amendment, strike "in the declaration or"

    On page 2, beginning on line 10 of the amendment, after "parties." strike all material through "section." on line 12 of the amendment


WITHDRAWAL OF AMENDMENT


    On motion of Senator Winsley the amendment to the striking amendment to Engrossed Substitute Senate Bill No. 5536 was withdrawn.


MOTION


    Senator Esser moved that the following amendment to the striking amendment by Senators Esser and Kline be adopted:

    On page 2, line 10 of the amendment, strike "in the declaration or"

    On page 12, after line 5 of the amendment, insert the following:

    "Sec. 6. RCW 64.34.417 and 1990 c 166 s 11 are each amended to read as follows:

    (1) Except under subsection (2) of this section, if a unit is offered for sale for which the delivery of a public offering statement or other disclosure document is required under the laws of any state or the United States, a single disclosure document conforming to the requirements of RCW 64.34.410 and 64.34.415 and conforming to any other requirement imposed under such laws, may be prepared and delivered in lieu of providing two or more disclosure documents.

    (2) The disclosure documents conforming to the requirements of RCW 64.34.410 and 64.34.415 shall disclose in a separate document, using twelve-point bold face type, that the purchaser may agree to arbitration of any right or obligation declared under this chapter, but that by doing so the purchaser is waiving the constitutional right to seek a de novo trial by jury in the superior court."

    Senator Esser spoke in favor of the amendment to the striking amendment.

    The President declared the question before the Senate to be the adoption of the amendment to the striking amendment by Senators Esser and Kline on page 2, line 10 to Engrossed Substitute Senate Bill No. 5536.

    The motion by Senator Esser carried and the amendment to the striking amendment was adopted by voice vote.


MOTION


    Senator Winsley moved that the following amendment to the striking amendment by Senator Winsley be adopted:

    On page 16, line 28 of the amendment, after "within" strike "four" and insert "((four)) six"

    Beginning on page 16, line 32 of the amendment, after "64.34.308(4)." strike everything through "section." on page 17, line 1, and insert "((Such period may not be reduced by either oral or written agreement)) Except under chapter 64.50 RCW, this period may not be reduced by either oral or written agreement, or through the use of contractual claims or notice procedures that require the filing or service of any claim or notice prior to the expiration of the period specified in this section."

    Senator Kline spoke in favor of the amendment to the striking amendment.


WITHDRAWAL OF AMENDMENT


    On motion of Senator Winsley the amendment to the striking amendment to Engrossed Substitute Senate Bill No. 5536 was withdrawn.



    Senator Winsley moved that the following amendment to the striking amendment by Senator Winsley be adopted:

    On page 19, after line 12 of the amendment, insert the following:

    "NEW SECTION. Sec. 12. (1) The legislature finds that it is a public health priority for young people to acquire the knowledge and skills necessary for healthy development. Sexually transmitted diseases, HIV infection, and unintended pregnancy do not contribute to the healthy development of young people in Washington state. Yet, rates of teen pregnancy, sexually transmitted diseases, and HIV infection among young people in this state are unacceptably high.

    (2) Over twelve thousand girls nineteen years of age and younger become pregnant in Washington every year. Girls fifteen through nineteen years of age have the highest chlamydia and the second-highest gonorrhea infection rates among all age groups in this state. Levels of chlamydia infection are likely equally high among Washington's teen boys, who experience a disparity in screening. It is also estimated that one-half of all new HIV infections in this country now occur among people aged twenty-five and younger.

    (3) Washington's adolescent health issues, like teen pregnancy and sexually transmitted diseases, must be addressed with comprehensive prevention efforts. The legislature intends to enhance the healthy development of young people in Washington state by taking opportunities to provide them with information needed to help reduce rates of teen pregnancy, sexually transmitted diseases, and HIV infection.

    NEW SECTION. Sec. 13. A new section is added to chapter 70.24 RCW to read as follows:

    (1) Students receiving health instruction paid for in whole or in part with public funds may receive health information and disease prevention instruction.

    (2) "Health information and disease prevention instruction" means medically and scientifically accurate curricula and information related to sexual activity that:

    (a) Is age appropriate;

    (b) Encourages communication with parents and other trusted adults;

    ©) Is respectful of the needs, attitudes, and perspectives of individuals and communities;

    (d) Encourages young people to develop and apply health-promoting behaviors including disease prevention and detection and accessing accurate health information;

    (e) Teaches that abstinence from sexual activity is the only sure way to avoid pregnancy and reduce the risk of sexually transmitted diseases;

    (f) Stresses the value of abstinence while addressing the health needs of youth who are sexually active;

    (g) Provides information about the health benefits and side effects of contraceptives and barrier methods as a means to prevent pregnancy and reduce the risk of sexually transmitted diseases and HIV/AIDS;

    (h) Provides information about the stages, patterns, and responsibilities associated with growth and development;

    (i) Promotes the development of interpersonal skills including a sense of dignity and self-worth and the communication, decision-making, assertiveness, and refusal skills necessary to reduce health risks and choose healthy behaviors; and

    (j) Helps young people develop and maintain healthy, respectful, and meaningful relationships.

    (3) The department of health shall work in consultation with the office of the superintendent of public instruction to develop guidelines for health information and disease prevention instruction under this section."

     On page 19, line 18 of the title amendment, strike "condominiums" and insert "condominiums and health education"

    On page 19, line 21 of the title amendment, strike "creating a new section" and insert "adding a new section to chapter 70.24 RCW; creating new sections"

    Senator Winsley spoke in favor of adoption of the amendment to the striking amendment.


POINT OF ORDER


    Senator Esser: “I request a ruling on scope and object, Mr. President.”


    Senator Winsley spoke in favor of the adoption of the amendment..


    President Owen: “Senator Winsley, the amendment will be scoped. Would you like to withdraw the amendment?”


EDITOR’S NOTE: Senate Rule 66 and Article 2, Section 38 of the Washington State Constitution states that no amendment shall be allowed which shall change the scope and object of the bill.


WITHDRAWAL OF AMENDMENT


    On motion of Senator Winsley the amendment to the striking amendment to Engrossed Substitute Senate Bill No. 5536 was withdrawn.


    The President declared the question before the Senate to be the adoption of the striking amendment by Senator Esser as amended by Senators Esser and Kline to Engrossed Substitute Senate Bill No. 5536.

    The motion by Senator Esser was carried and the striking amendment was adopted as amended.


    Senator Esser moved that the following title amendments be adopted:

    On page 1, line 1 of the title, after "condominiums;" strike the remainder of the title and insert "amending RCW 64.34.100, 64.34.216, 64.34.324, 64.34.410, 64.34.425, 64.34.445, 64.34.450, and 64.34.452; adding new sections to chapter 64.34 RCW; creating a new section; and providing an effective date."

    On page 19, line 20 of the title amendment, after “64.34.410,” insert “64.34.417,”


MOTION


    On motion of Senator Esser, the rules were suspended, Second Engrossed Substitute Senate Bill No. 5536, the second reading considered the third and the bill was placed on final passage.

    Senators Esser, Kline and Winsley spoke in favor of passage of the bill.

    The President declared the question before the Senate to be the final passage of Second Engrossed Substitute Senate Bill No. 5536.


ROLL CALL


    The Secretary called the roll on Second Engrossed Substitute Senate Bill No. 5536 and the bill passed the Senate by the following vote: Yeas, 46; Nays, 3; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Finkbeiner, Franklin, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Winsley and Zarelli - 46.

     Voting nay: Senators Fairley, Fraser and Thibaudeau - 3.

    SECOND ENGROSSED SUBSTITUTE SENATE BILL NO. 5536, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


    There being no objection, the Senate reverted to the sixth order of business.


SECOND READING


    SENATE BILL NO. 6210, by Senators Keiser, Winsley, Thibaudeau and Deccio

 

Modifying medical information exchange and disclosure provisions.


MOTION


    On motion of Senator Esser, Substitute Senate Bill No. 6210 was substituted for Senate Bill No. 6210 and the substitute bill was placed on second reading and read the second time.


MOTION


    Senator Keiser moved that the following amendment by Senators Keiser and Kline be adopted:

    On page 2, line 21, after "medical malpractice." insert "The privacy protections of chapter 70.02 RCW and the federal health insurance portability and accountability act of 1996 and its implementing regulations apply to the sharing of individually identifiable patient information held by a coordinated quality improvement program."

    On page 5, line 19, after "medical malpractice." insert "The privacy protections of chapter 70.02 RCW and the federal health insurance portability and accountability act of 1996 and its implementing regulations apply to the sharing of individually identifiable patient information held by a coordinated quality improvement program."

    On page 8, line 30, after "medical malpractice." insert "The privacy protections of chapter 70.02 RCW and the federal health insurance portability and accountability act of 1996 and its implementing regulations apply to the sharing of individually identifiable patient information held by a coordinated quality improvement program."

    Senator Keiser spoke in favor of adoption of the amendment.


POINT OF INQUIRY


    Senator Deccio: “Would Senator Keiser yield to a question? Senator Keiser, it’s my understanding this is a redundant amendment but you’re doing it only to clarify what is already in the bill.”

    Senator Keiser: “That is correct. My understanding is that it is already in the bill clearly, but that, because privacy is such a serious concern to some people, we wanted to make it doubly clear.”

    The President declared the question before the Senate to be the adoption of the amendment by Senators Keiser and Kline on page 2, line 21 to Substitute Senate Bill No. 6210.

    The motion by Senator Keiser carried and the amendment was adopted by voice vote.


MOTIONS


    On motion of Senator Keiser, the rules were suspended, Engrossed Substitute Senate Bill No. 6210 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

    Senators Keiser and Deccio spoke in favor of passage of the bill.

    The President declared the question before the Senate to be the final passage of Engrossed Substitute Senate Bill No. 6210.


ROLL CALL


    The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 6210 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 49.

    ENGROSSED SUBSTITUTE SENATE BILL NO. 6210, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


SECOND READING


    SENATE BILL NO. 6711, by Senators Horn, Jacobsen, Swecker, Prentice and Esser

 

Adjusting regional transportation planning organization board membership.


MOTIONS


    On motion of Senator Horn, Substitute Senate Bill No. 6711 was substituted for Senate Bill No. 6711 and the substitute bill was placed on second reading and read the second time.

    On motion of Senator Horn, the rules were suspended, Substitute Senate Bill No. 6711 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

    Senator Horn spoke in favor of passage of the bill.

    The President declared the question before the Senate to be the final passage of Substitute Senate Bill No. 6711.


ROLL CALL


    The Secretary called the roll on the final passage of Substitute Senate Bill No. 6711 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 49.

    SUBSTITUTE SENATE BILL NO. 6711, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


SECOND READING


    SENATE BILL NO. 6454, by Senators McAuliffe, Roach, Fairley, Eide, Regala, Winsley, Prentice, Shin, Kline, Thibaudeau, Johnson, Franklin, Keiser, Rasmussen, Zarelli, Jacobsen and B. Sheldon

 

Regarding the use of portable or cellular phones or paging telecommunications devices by students.


MOTIONS


    On motion of Senator Johnson, Substitute Senate Bill No. 6454 was substituted for Senate Bill No. 6454 and the substitute bill was placed on second reading and read the second time.

    On motion of Senator Johnson, the rules were suspended, Substitute Senate Bill No. 6454 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

    Senators McAuliffe, Johnson and Schmidt spoke in favor of passage of the bill.

    The President declared the question before the Senate to be the final passage of Substitute Senate Bill No. 6454.


ROLL CALL


    The Secretary called the roll on the final passage of Substitute Senate Bill No. 6454 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 49.

    SUBSTITUTE SENATE BILL NO. 6454, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


SECOND READING


    SENATE BILL NO. 6480, by Senators Hewitt, Deccio, Hale, Doumit, Rasmussen, Honeyford and Mulliken

 

Increasing the number of days certain fairs can use the special occasion liquor license.


    The bill was read the second time.


MOTION


    On motion of Senator Hewitt, the rules were suspended, Senate Bill No. 6480 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

    Senator Hewitt spoke in favor of passage of the bill.

    The President declared the question before the Senate to be the final passage of Senate Bill No. 6480.


ROLL CALL


    The Secretary called the roll on the final passage of Senate Bill No. 6480 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 49.

     SENATE BILL NO. 6480, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


SECOND READING


    SENATE JOINT MEMORIAL NO. 8052, by Senators Benton and Roach

 

Requesting that the congressional delegation of the state of Washington work to pass lifetime and retirement savings accounts.


    The memorial was read the second time.


MOTION


    On motion of Senator Benton, the rules were suspended, Senate Joint Memorial No. 8052 was advanced to third reading, the second reading considered the third and the memorial was placed on final passage.

    Senator Benton spoke in favor of passage of the memorial.

    Senator Keiser spoke against passage of the memorial.


MOTION


    On motion of Senator Eide, Senators Hargrove and Prentice were excused.

    The President declared the question before the Senate to be the final passage of Senate Joint Memorial No. 8052.


ROLL CALL


    The Secretary called the roll on the final passage of Senate Joint Memorial No. 8052 and the memorial passed the Senate by the following vote: Yeas, 44; Nays, 3; Absent, 0; Excused, 2.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Finkbeiner, Franklin, Fraser, Hale, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Rasmussen, Roach, Schmidt, Sheahan, Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 44.

     Voting nay: Senators Fairley, Regala and Sheldon, B. - 3.

     Excused: Senators Hargrove and Prentice - 2.

     SENATE JOINT MEMORIAL NO. 8052, having received the constitutional majority, was declared passed.


    There being no objection, the Senate advanced to the seventh order of business.


THIRD READING


    ENGROSSED SENATE BILL NO. 5255, by Senators Roach, Hale, Stevens, Mulliken, T. Sheldon, Hewitt, Parlette, Horn, Rossi, Benton, Schmidt, Johnson and Esser

 

Limiting the rule-making authority of certain entities to those instances where there is a specific grant of legislative authority.


MOTION


    On motion of Senator Roach, the rules were suspended and Engrossed Senate Bill No. 5255 was returned to second reading for the purpose of an amendment.

    There being no objection, on motion of Senator Roach, the motion by Senator Roach to return Engrossed Senate Bill No. 5255 was withdrawn.


    The bill was read on Third Reading.

    Senators Roach and Deccio spoke in favor of passage of the bill.

    Senators Kastama and Fraser spoke against passage of the bill.

    The President declared the question before the Senate to be the final passage of Engrossed Senate Bill No. 5255.


ROLL CALL


    The Secretary called the roll on the final passage of Engrossed Senate Bill No. 5255 and the bill passed the Senate by the following vote: Yeas, 31; Nays, 17; Absent, 0; Excused, 1.

     Voting yea: Senators Benton, Berkey, Brandland, Carlson, Deccio, Doumit, Eide, Esser, Finkbeiner, Hale, Hewitt, Honeyford, Horn, Johnson, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Rasmussen, Roach, Schmidt, Sheahan, Sheldon, T., Shin, Stevens, Swecker, Winsley and Zarelli - 31.

     Voting nay: Senators Brown, Fairley, Franklin, Fraser, Haugen, Jacobsen, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, Poulsen, Prentice, Regala, Sheldon, B., Spanel and Thibaudeau - 17.

     Excused: Senator Hargrove - 1.

    ENGROSSED SENATE BILL NO. 5255, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


MOTION


    On motion of Senator Esser, the Senate reverted to the sixth order of business.


SECOND READING


    SENATE BILL NO. 6698, by Senators Benton and Zarelli

 

Modifying excise tax accounting requirements.


    The bill was read the second time.


MOTION


    Senator Benton moved that the following striking amendment by Senators Benton and Zarelli be adopted:

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

    "Sec. 1. RCW 82.08.100 and 1982 1st ex.s. c 35 s 37 are each amended to read as follows:

    (1) The department of revenue, by general regulation, shall provide that a taxpayer whose regular books of account are kept on a cash receipts basis may file returns based upon his cash receipts for each reporting period and pay the tax herein provided upon such basis in lieu of reporting and paying the tax on all sales made during such period.

    (2) Upon a showing of substantial hardship by the taxpayer, the department shall allow a taxpayer whose regular books of account are kept on an accrual basis to file returns based upon his cash receipts for each reporting period and pay the tax herein provided upon such basis in lieu of reporting and paying the tax on all sales made during such period. "Substantial hardship" means that on the due date of a return the taxpayer's retail sales tax billed but not collected for the tax-reporting period is more than seventy-five percent of the total tax due on the return for the same tax-reporting period. Once a taxpayer whose regular books of account are kept on an accrual basis elects to report on a cash basis because of a substantial hardship, the taxpayer must continue to report on a cash basis for at least twelve months.

    (3) A taxpayer filing returns on a cash receipts basis is not required to pay such tax on debts which are deductible as worthless for federal income tax purposes.

    Sec. 2. RCW 82.12.070 and 1982 1st ex.s. c 35 s 38 are each amended to read as follows:

    (1) The department of revenue, by general regulation, shall provide that a taxpayer whose regular books of account are kept on a cash receipts basis may file returns based upon his cash receipts for each reporting period and pay the tax herein provided upon such basis in lieu of reporting and paying the tax on all sales made during such period.

    (2) Upon a showing of substantial hardship by the taxpayer, the department shall allow a taxpayer whose regular books of account are kept on an accrual basis to file returns based upon his cash receipts for each reporting period and pay the tax herein provided upon such basis in lieu of reporting and paying the tax on all sales made during such period. "Substantial hardship" means that on the due date of a return the taxpayer's retail sales tax billed but not collected for the tax-reporting period is more than seventy-five percent of the total tax due on the return for the same tax-reporting period. Once a taxpayer whose regular books of account are kept on an accrual basis elects to report on a cash basis because of a substantial hardship the taxpayer must continue to report on a cash basis for at least twelve months.

    (3) A taxpayer filing returns on a cash receipts basis is not required to pay such tax on debts which are deductible as worthless for federal income tax purposes."

    Senators Benton and Zarelli spoke in favor of adoption of the striking amendment.

    Senator Fraser spoke against adoption of the striking amendment.

    The President declared the question before the Senate to be the adoption of the striking amendment by Senators Benton and Zarelli on page 1, strike everything after the enacting clause to Senate Bill No. 6698.

    The motion by Senator Benton carried and the striking amendment was adopted by voice vote.


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

    On page 1, on line 1 of the title, after "purposes;", strike the remainder of the title and insert "and amending RCW 82.08.100 and 82.12.070."


MOTION


    On motion of Senator Zarelli, the rules were suspended, Engrossed Senate Bill No. 6698 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

    Senator Zarelli spoke in favor of passage of the bill.

    Senator Fraser spoke against passage of the bill.


MOTION


    On motion of Senator Murray, Senator Roach was excused.

    The President declared the question before the Senate to be the final passage of Engrossed Senate Bill No. 6698.


ROLL CALL


    The Secretary called the roll on the final passage of Engrossed Senate Bill No. 6698 and the bill passed the Senate by the following vote: Yeas, 31; Nays, 16; Absent, 0; Excused, 2.

     Voting yea: Senators Benton, Brandland, Carlson, Deccio, Doumit, Eide, Esser, Finkbeiner, Hale, Hewitt, Honeyford, Horn, Johnson, Keiser, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Rasmussen, Schmidt, Sheahan, Sheldon, T., Shin, Stevens, Swecker, Winsley and Zarelli - 31.

     Voting nay: Senators Berkey, Brown, Fairley, Franklin, Fraser, Haugen, Jacobsen, Kastama, Kline, Kohl-Welles, McAuliffe, Prentice, Regala, Sheldon, B., Spanel and Thibaudeau - 16.

     Excused: Senators Hargrove and Roach - 2.

    ENGROSSED SENATE BILL NO. 6698, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


SECOND READING


    SENATE BILL NO. 5376, by Senator Prentice

 

Describing the route of SR 99.


    The bill was read the second time.


MOTION


    On motion of Senator Prentice, the rules were suspended, Senate Bill No. 5376 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

    Senators Prentice and Horn spoke in favor of passage of the bill.

    The President declared the question before the Senate to be the final passage of Senate Bill No. 5376.


ROLL CALL


    The Secretary called the roll on the final passage of Senate Bill No. 5376 and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 1; Excused, 2.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 46.

     Absent: Senator Mulliken - 1.

     Excused: Senators Hargrove and Roach - 2.

    SENATE BILL NO. 5376, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


PERSONAL PRIVILEGE


    Senator Brandland: “A point of personal privilege. I am still married, thank you for asking. I want to draw your attention to this little device here. I love these things. They really simplified my life. I want to tell that yesterday I received three phone calls on this, yesterday morning. I received one from Representative Lantz. I received one from my son as he was leaving the state of Washington headed off to Las Vegas. And I received another one from my Legislative Assistant, Bunny Hooper, yesterday morning. I want you to know that AT&T advised me of those phone calls at 4:40 this morning. This morning. The phone calls were made yesterday morning. I got notified of the phone calls today at 4:40 in the morning. I’m getting tired and I want to go home. Thank you.”


SECOND READING


    SECOND SUBSTITUTE SENATE BILL NO. 5369, by Senate Committee on Judiciary (originally sponsored by Senators Winsley, Haugen, Hale, Oke and McCaslin)

 

Regulating automated traffic safety cameras.


    The bill was read the second time.


MOTION


    Senator Winsley moved that the following striking amendment by Senator Winsley be adopted:

    Strike everything after the enacting clause and insert the following:

    "NEW SECTION. Sec. 1. A new section is added to chapter 46.04 RCW to read as follows:

    "Automated traffic safety camera" means a device that uses a vehicle sensor installed to work in conjunction with an intersection traffic control system or a railroad grade crossing control system, and a camera synchronized to automatically record one or more sequenced photographs, microphotographs, or electronic images of the rear of a motor vehicle at the time the vehicle fails to stop when facing a steady red traffic control signal or an activated railroad grade crossing control signal.

    NEW SECTION. Sec. 2 A new section is added to chapter 46.04 RCW to read as follows:

    "Automated traffic infraction notice" means a notice of a traffic infraction generated by the use of an authorized automated traffic safety camera issued to the registered owner of a vehicle photographed while failing to stop at a red traffic control signal or violating an activated railroad grade crossing control. An automated traffic infraction notice issued by the use of an automated traffic safety camera system must include a copy or facsimile of the photograph showing both the vehicle license plate of the offending vehicle and the traffic control device or the activated railroad grade crossing control. An automated traffic infraction notice will be administered under RCW 46.63.140.

    NEW SECTION. Sec. 3. A new section is added to chapter 46.63 RCW to read as follows:

    (1) The use of automated traffic safety cameras is subject to the following regulations:

    (a) The appropriate local legislative authority must first enact an ordinance allowing for their use to detect one or more of the following: Stoplight or railroad crossing violations. At a minimum, the local ordinance must contain the restrictions described in this section and provisions for public notice and signage. Cities and counties using traffic safety cameras before the effective date of this act are subject to the restrictions described in this section, but are not required to enact an authorizing ordinance.

    (b) Use of automated traffic safety cameras is restricted to two-arterial intersections and railroad crossings only.

    (c) Automated traffic safety cameras may take pictures of the vehicle and vehicle license plate and only while an infraction is occurring. The picture shall not reveal the face of the driver or of passengers in the vehicle.

    (d) The ordinance enacted by the local legislative authority may provide that automated traffic safety cameras may take pictures of the vehicle and vehicle license plate while an infraction is occurring.

    (e) The law enforcement agency having jurisdiction shall plainly mark the locations where an automated traffic safety camera is used by placing signs on street locations that clearly indicate to a driver that he or she is entering a zone where traffic laws are enforced by an automated traffic safety camera. Signs must be displayed one hundred yards in advance of placement of the locations where an automated traffic safety camera is used and must state the following in letters at least six inches high: "TRAFFIC LIGHT AND RAILROAD CROSSING VIOLATIONS RECORDED BY CAMERA."

    (f) A notice of an infraction must be mailed to the registered owner of the vehicle within fourteen days of the infraction occurring.

    (g) A person receiving an automated traffic infraction notice based on evidence detected by an automated traffic safety camera may respond to the notice by mail.

    (h) The registered owner of a vehicle is responsible for an infraction under RCW 46.63.030(2) unless within fifteen days after notification of the infraction the registered owner furnishes the officials or agents of the municipality that issued the notice of infraction with:

    (i) An affidavit made under oath, stating that the vehicle involved was, at the time, stolen or in the care, custody, or control of some person other than the registered owner; or

    (ii) Testimony in open court under oath that the person was not the operator of the vehicle at the time of the alleged infraction.

    (2) Infractions detected through the use of automated traffic safety cameras will be processed as are stopping, standing, or parking violations under RCW 46.61.560, but are not part of the registered owner's driving record under RCW 46.52.101 and 46.52.120.

    (3) If an automated traffic infraction notice is sent to the registered owner under RCW 46.63.030(2) and the registered owner is a rental car business, the infraction will be dismissed against the business if it mails to the issuing agency, within fourteen days of receiving the notice, a declaration under penalty of perjury of the name and known mailing address of the individual driving or renting the vehicle when the infraction occurred. If the business is unable to determine who was driving or renting the vehicle at the time the infraction occurred, the business must sign a declaration under penalty of perjury to this effect. The declaration must be mailed to the issuing agency within fourteen days of receiving the notice of traffic infraction. Timely mailing of this declaration to the issuing agency relieves a rental car business of any liability under this chapter for the notice of infraction. A declaration form suitable for this purpose must be included with each automated traffic infraction notice issued, along with instructions for its completion and use.

    (4) If a county or city has established an authorized automated traffic safety camera program under this section, the compensation paid to the manufacturer or vendor of the equipment used must be based only upon the value of the equipment and services provided or rendered in support of the system, and may not be based upon a portion of the fine or civil penalty imposed or the revenue generated by the equipment.

    Sec. 4. RCW 3.46.120 and 1995 c 291 s 2 are each amended to read as follows:

    (1) All money received by the clerk of a municipal department including penalties, fines, bail forfeitures, fees and costs shall be paid by the clerk to the city treasurer.

    (2) The city treasurer shall remit monthly thirty-two percent of the noninterest money received under this section, other than for parking infractions or for infractions detected by an automated traffic safety camera, and certain costs to the state treasurer. The city treasurer shall remit monthly ten percent of the noninterest money received under this section for infractions detected by an automated traffic safety camera to the state treasurer. "Certain costs" as used in this subsection, means those costs awarded to prevailing parties in civil actions under RCW 4.84.010 or 36.18.040, or those costs awarded against convicted defendants in criminal actions under RCW 10.01.160, 10.46.190, or 36.18.040, or other similar statutes if such costs are specifically designated as costs by the court and are awarded for the specific reimbursement of costs incurred by the state, county, city, or town in the prosecution of the case, including the fees of defense counsel. Money remitted under this subsection to the state treasurer shall be deposited as provided in RCW 43.08.250.

    (3) The balance of the noninterest money received under this section shall be retained by the city and deposited as provided by law.

    (4) Penalties, fines, bail forfeitures, fees, and costs may accrue interest at the rate of twelve percent per annum, upon assignment to a collection agency. Interest may accrue only while the case is in collection status.

    (5) Interest retained by the court on penalties, fines, bail forfeitures, fees, and costs shall be split twenty-five percent to the state treasurer for deposit in the public safety and education account as provided in RCW 43.08.250, twenty-five percent to the state treasurer for deposit in the judicial information system account as provided in RCW 2.68.020, twenty-five percent to the city general fund, and twenty-five percent to the city general fund to fund local courts.

    Sec. 5. RCW 3.50.100 and 1995 c 291 s 3 are each amended to read as follows:

    (1) Costs in civil and criminal actions may be imposed as provided in district court. All fees, costs, fines, forfeitures and other money imposed by any municipal court for the violation of any municipal or town ordinances shall be collected by the court clerk and, together with any other noninterest revenues received by the clerk, shall be deposited with the city or town treasurer as a part of the general fund of the city or town, or deposited in such other fund of the city or town, or deposited in such other funds as may be designated by the laws of the state of Washington.

    (2) The city treasurer shall remit monthly thirty-two percent of the noninterest money received under this section, other than for parking infractions or for infractions detected by an automated traffic safety camera, and certain costs to the state treasurer. The city treasurer shall remit monthly ten percent of the noninterest money received under this section for infractions detected by an automated traffic safety camera to the state treasurer. "Certain costs" as used in this subsection, means those costs awarded to prevailing parties in civil actions under RCW 4.84.010 or 36.18.040, or those costs awarded against convicted defendants in criminal actions under RCW 10.01.160, 10.46.190, or 36.18.040, or other similar statutes if such costs are specifically designated as costs by the court and are awarded for the specific reimbursement of costs incurred by the state, county, city, or town in the prosecution of the case, including the fees of defense counsel. Money remitted under this subsection to the state treasurer shall be deposited as provided in RCW 43.08.250.

    (3) The balance of the noninterest money received under this section shall be retained by the city and deposited as provided by law.

    (4) Penalties, fines, bail forfeitures, fees, and costs may accrue interest at the rate of twelve percent per annum, upon assignment to a collection agency. Interest may accrue only while the case is in collection status.

    (5) Interest retained by the court on penalties, fines, bail forfeitures, fees, and costs shall be split twenty-five percent to the state treasurer for deposit in the public safety and education account as provided in RCW 43.08.250, twenty-five percent to the state treasurer for deposit in the judicial information system account as provided in RCW 2.68.020, twenty-five percent to the city general fund, and twenty-five percent to the city general fund to fund local courts.

    Sec. 6. RCW 35.20.220 and 1995 c 291 s 4 are each amended to read as follows:

    (1) The chief clerk, under the supervision and direction of the court administrator of the municipal court, shall have the custody and care of the books, papers and records of said court; he shall be present by himself or deputy during the session of said court, and shall have the power to swear all witnesses and jurors, and administer oaths and affidavits, and take acknowledgments. He shall keep the records of said court, and shall issue all process under his hand and the seal of said court, and shall do and perform all things and have the same powers pertaining to his office as the clerks of the superior courts have in their office. He shall receive all fines, penalties and fees of every kind, and keep a full, accurate and detailed account of the same; and shall on each day pay into the city treasury all money received for said city during the day previous, with a detailed account of the same, and taking the treasurer's receipt therefor.

    (2) The city treasurer shall remit monthly thirty-two percent of the noninterest money received under this section, other than for parking infractions or for infractions detected by an automated traffic safety camera, and certain costs to the state treasurer. The city treasurer shall remit monthly ten percent of the noninterest money received under this section for infractions detected by an automated traffic safety camera to the state treasurer. "Certain costs" as used in this subsection, means those costs awarded to prevailing parties in civil actions under RCW 4.84.010 or 36.18.040, or those costs awarded against convicted defendants in criminal actions under RCW 10.01.160, 10.46.190, or 36.18.040, or other similar statutes if such costs are specifically designated as costs by the court and are awarded for the specific reimbursement of costs incurred by the state, county, city, or town in the prosecution of the case, including the fees of defense counsel. Money remitted under this subsection to the state treasurer shall be deposited as provided in RCW 43.08.250.

    (3) The balance of the noninterest money received under this section shall be retained by the city and deposited as provided by law.

    (4) Penalties, fines, bail forfeitures, fees, and costs may accrue interest at the rate of twelve percent per annum, upon assignment to a collection agency. Interest may accrue only while the case is in collection status.

    (5) Interest retained by the court on penalties, fines, bail forfeitures, fees, and costs shall be split twenty-five percent to the state treasurer for deposit in the public safety and education account as provided in RCW 43.08.250, twenty-five percent to the state treasurer for deposit in the judicial information system account as provided in RCW 2.68.020, twenty-five percent to the city general fund, and twenty-five percent to the city general fund to fund local courts.

    Sec. 7. RCW 46.63.030 and 2002 c 279 s 14 are each amended to read as follows:

    (1) A law enforcement officer has the authority to issue a notice of traffic infraction or an automated traffic infraction notice:

    (a) When the infraction is committed in the officer's presence;

    (b) When the officer is acting upon the request of a law enforcement officer in whose presence the traffic infraction was committed; ((or))

    (c) If an officer investigating at the scene of a motor vehicle accident has reasonable cause to believe that the driver of a motor vehicle involved in the accident has committed a traffic infraction; or

    (d) When the notice is mailed to the registered owner or the person renting a vehicle as authorized under subsection (2) of this section.

    (2) When an automated traffic safety camera is used in compliance with section 3 of this act, a law enforcement officer, whether present or not during the commission of the infraction, or other issuing agency may issue an automated traffic infraction notice by mail to the registered owner of the vehicle, or to the person renting the vehicle. The registered owner of the vehicle or the person renting the vehicle is responsible for the infraction.

    (3) A court may issue a notice of traffic infraction upon receipt of a written statement of the officer that there is reasonable cause to believe that an infraction was committed.

    (((3))) (4) If any motor vehicle without a driver is found parked, standing, or stopped in violation of this title or an equivalent administrative regulation or local law, ordinance, regulation, or resolution, the officer finding the vehicle shall take its registration number and may take any other information displayed on the vehicle which may identify its user, and shall conspicuously affix to the vehicle a notice of traffic infraction.

    (((4))) (5) In the case of failure to redeem an abandoned vehicle under RCW 46.55.120, upon receiving a complaint by a registered tow truck operator that has incurred costs in removing, storing, and disposing of an abandoned vehicle, an officer of the law enforcement agency responsible for directing the removal of the vehicle shall send a notice of infraction by certified mail to the last known address of the person responsible under RCW 46.55.105. The notice must be entitled "Littering--Abandoned Vehicle" and give notice of the monetary penalty. The officer shall append to the notice of infraction, on a form prescribed by the department of licensing, a notice indicating the amount of costs incurred as a result of removing, storing, and disposing of the abandoned vehicle, less any amount realized at auction, and a statement that monetary penalties for the infraction will not be considered as having been paid until the monetary penalty payable under this chapter has been paid and the court is satisfied that the person has made restitution in the amount of the deficiency remaining after disposal of the vehicle.

    Sec. 8. RCW 46.63.140 and 1980 c 128 s 11 are each amended to read as follows:

    (1) In any traffic infraction case or automated traffic infraction case involving a violation of this title or equivalent administrative regulation or local law, ordinance, regulation, or resolution relating to the stopping, standing, or parking of a vehicle or violations detected by automated traffic safety cameras, proof that the particular vehicle described in the notice of traffic infraction or automated traffic infraction notice was stopping, standing, or parking or did commit the violation detected by an automated traffic safety camera in violation of any such provision of this title or an equivalent administrative regulation or local law, ordinance, regulation, or resolution, together with proof that the person named in the notice of traffic infraction or automated traffic infraction notice was at the time of the violation the registered owner of the vehicle, ((shall)) constitutes in evidence a prima facie presumption that the registered owner of the vehicle was the person who parked or placed the vehicle at the point where, and for the time during which, the violation occurred or who operated the vehicle photographed by an automated traffic safety camera.

    (2) The foregoing stated presumption ((shall apply)) applies only when the procedure prescribed in RCW 46.63.030(((3))) (4) has been followed.

    NEW SECTION. Sec. 9. The legislature respectfully requests the Washington state supreme court to amend the Infraction Rules for Courts of Limited Jurisdiction to conform to this act. Furthermore, the legislature respectfully asks the court to create an automated traffic infraction notice that is consistent with this act."

    Senator Winsley spoke in favor of adoption of the striking amendment.

    The President declared the question before the Senate to be the adoption of the striking amendment by Senator Winsley to Second Substitute Senate Bill No. 5369.

    The motion by Senator Winsley carried and the striking amendment was adopted by voice vote


MOTION


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

    On page 1, line 2 of the title, after "cameras;" strike the remainder of the title and insert "amending RCW 3.46.120, 3.50.100, 35.20.220, 46.63.030, and 46.63.140; adding new sections to chapter 46.04 RCW; adding a new section to chapter 46.63 RCW; and creating a new section."


MOTION


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

    Senators Winsley, Franklin, Kline and Horn spoke in favor of passage of the bill.

    Senator Honeyford spoke against passage of the bill.

    The President declared the question before the Senate to be the final passage of Engrossed Second Substitute Senate Bill No. 5369.


ROLL CALL


    The Secretary called the roll on the final passage of Engrossed Second Substitute Senate Bill No. 5369 and the bill passed the Senate by the following vote: Yeas, 34; Nays, 13; Absent, 0; Excused, 2.

     Voting yea: Senators Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Fairley, Finkbeiner, Franklin, Fraser, Haugen, Horn, Jacobsen, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Schmidt, Sheldon, B., Shin, Spanel, Thibaudeau and Winsley - 34.

     Voting nay: Senators Benton, Esser, Hale, Hewitt, Honeyford, Johnson, Morton, Mulliken, Sheahan, Sheldon, T., Stevens, Swecker and Zarelli - 13.

     Excused: Senators Hargrove and Roach - 2.

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


PERSONAL PRIVILEGE


    Senator Schmidt: “A point of personal privilege. Well, it’s getting late in the day. It is Thursday night but, you know Senator Brandland, you did a pretty good job there about talking about your wife and everything but this is a family time for me. I got to brag about my son. Now, most of you know that last year my son was seventeen years old and I sent out this little email to everybody that at the age of seventeen he was doing stand up comedy in Giggles in downtown Seattle. Well, at 9:00 tonight, if your still kind of awake and you want to know what you’re doing there’s a comedy competition here in town tonight at this place called the Palladium. It used to be the Go Club. It’s down on 4th between Franklin and Adams and he’s going to be one of the contestants there. So, 9:00 tonight you want to go down there and cheer him on. That’s where I’m going to be.”


MOTION


    At 6:00 p.m., on motion of Senator Esser, the Senate was declared to be at ease subject to the Call of the President.


    The Senate was called to order at 6:40 p.m. by President Owen.


MOTION


    At 6:42 p.m., on motion of Senator Esser, the Senate adjourned until 8:30 a.m., Friday, February 13, 2004.


BRAD OWEN, President of the Senate


MILTON H. DOUMIT, JR., Secretary of the Senate