A person shall be exempt from any legal obligation to pay all or a portion of the amount of excess and regular real property taxes due and payable in the year following the year in which a claim is filed, and thereafter, in accordance with the following:

        (1) The property taxes must have been imposed upon a residence which was occupied by the person claiming the exemption as a principal place of residence as of the time of filing: PROVIDED, That any person who sells, transfers, or is displaced from his or her residence may transfer his or her exemption status to a replacement residence, but no claimant shall receive an exemption on more than one residence in any year: PROVIDED FURTHER, That confinement of the person to a hospital, nursing home, boarding home, or adult family home shall not disqualify the claim of exemption if:

        (a) The residence is temporarily unoccupied;

        (b) The residence is occupied by a spouse and/or a person financially dependent on the claimant for support; or

        (c) The residence is rented for the purpose of paying nursing home, hospital, boarding home, or adult family home costs;

        (2) The person claiming the exemption must have owned, at the time of filing, in fee, as a life estate, or by contract purchase, the residence on which the property taxes have been imposed or if the person claiming the exemption lives in a cooperative housing association, corporation, or partnership, such person must own a share therein representing the unit or portion of the structure in which he or she resides. For purposes of this subsection, a residence owned by a marital community or owned by cotenants shall be deemed to be owned by each spouse or cotenant, and any lease for life shall be deemed a life estate;

        (3) The person claiming the exemption must be (a) sixty-one years of age or older on December 31st of the year in which the exemption claim is filed, or must have been, at the time of filing, retired from regular gainful employment by reason of disability, or (b) a veteran of the armed forces of the United States with one hundred percent service connected disability as provided in 42 U.S.C. Sec. 423 (d)(1)(A) as amended prior to January 1, 2005. ((: PROVIDED, That any )) However, any surviving spouse of a person who was receiving an exemption at the time of the person's death shall qualify if the surviving spouse is fifty-seven years of age or older and otherwise meets the requirements of this section;

        (4) The amount that the person shall be exempt from an obligation to pay shall be calculated on the basis of combined disposable income, as defined in RCW 84.36.383. If the person claiming the exemption was retired for two months or more of the assessment year, the combined disposable income of such person shall be calculated by multiplying the average monthly combined disposable income of such person during the months such person was retired by twelve. If the income of the person claiming exemption is reduced for two or more months of the assessment year by reason of the death of the person's spouse, or when other substantial changes occur in disposable income that are likely to continue for an indefinite period of time, the combined disposable income of such person shall be calculated by multiplying the average monthly combined disposable income of such person after such occurrences by twelve. If it is necessary to estimate income to comply with this subsection, the assessor may require confirming documentation of such income prior to May 31 of the year following application;

        (5)(a) A person who otherwise qualifies under this section and has a combined disposable income of thirty-five thousand dollars or less shall be exempt from all excess property taxes; and

        (b)(i) A person who otherwise qualifies under this section and has a combined disposable income of thirty thousand dollars or less but greater than twenty-five thousand dollars shall be exempt from all regular property taxes on the greater of fifty thousand dollars or thirty-five percent of the valuation of his or her residence, but not to exceed seventy thousand dollars of the valuation of his or her residence; or

        (ii) A person who otherwise qualifies under this section and has a combined disposable income of twenty-five thousand dollars or less shall be exempt from all regular property taxes on the greater of sixty thousand dollars or sixty percent of the valuation of his or her residence;

        (6) For a person who otherwise qualifies under this section and has a combined disposable income of thirty-five thousand dollars or less, the valuation of the residence shall be the assessed value of the residence on the later of January 1, 1995, or January 1st of the assessment year the person first qualifies under this section. If the person subsequently fails to qualify under this section only for one year because of high income, this same valuation shall be used upon requalification. If the person fails to qualify for more than one year in succession because of high income or fails to qualify for any other reason, the valuation upon requalification shall be the assessed value on January 1st of the assessment year in which the person requalifies. If the person transfers the exemption under this section to a different residence, the valuation of the different residence shall be the assessed value of the different residence on January 1st of the assessment year in which the person transfers the exemption.

        In no event may the valuation under this subsection be greater than the true and fair value of the residence on January 1st of the assessment year.

        This subsection does not apply to subsequent improvements to the property in the year in which the improvements are made. Subsequent improvements to the property shall be added to the value otherwise determined under this subsection at their true and fair value in the year in which they are made."

        Strike all of section 3.

        Renumber the sections consecutively and correct any internal references accordingly.

        On page 1, on line 3 of the title, after "84.36.379" strike "84.36.381, and 84.36.383", insert "and 84.36.381"

and the same is herewith transmitted.

Thomas Hoemann, Secretary

       There being no objection, the House concurred in the Senate amendment to HOUSE BILL NO. 1019 and advanced the bill as amended by the Senate to final passage.

FINAL PASSAGE OF HOUSE BILL

AS SENATE AMENDED

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

       The Speaker stated the question before the House to be final passage of House Bill No. 1019, as amended by the Senate.

ROLL CALL

       The Clerk called the roll on the final passage of House Bill No. 1019,, as amended by the Senate, and the bill passed the House by the following vote: Yeas - 96, Nays - 0, Absent - 0, Excused - 2.

       Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Bailey, Blake, Buck, Buri, Campbell, Chandler, Chase, Clements, Clibborn, Cody, Condotta, Conway, Cox, Crouse, Curtis, Darneille, DeBolt, Dickerson, Dunn, Dunshee, Eickmeyer, Ericks, Ericksen, Flannigan, Fromhold, Grant, Green, Haigh, Haler, Hankins, Hasegawa, Hinkle, Holmquist, Hudgins, Hunt, Hunter, Jarrett, Kagi, Kenney, Kessler, Kilmer, Kirby, Kretz, Kristiansen, Lantz, Linville, Lovick, McCoy, McCune, McDermott, McDonald, McIntire, Miloscia, Moeller, Morrell, Morris, Murray, Newhouse, Nixon, O'Brien, Orcutt, Ormsby, Pearson, Pettigrew, Priest, Quall, Roach, Roberts, Rodne, Santos, Schindler, Sells, Serben, Shabro, Simpson, Skinner, Sommers, Springer, Strow, B. Sullivan, P. Sullivan, Sump, Takko, Talcott, Tom, Upthegrove, Wallace, Walsh, Williams, Wood, Woods and Mr. Speaker - 96.

       Excused: Representatives Appleton and Schual-Berke - 2.

       HOUSE BILL NO. 1019, as amended by the Senate having received the constitutional majority, was declared passed.

MESSAGE FROM THE SENATE

April 22, 2005

Mr. Speaker:

       The Senate refused to grant the House request for a conference on SUBSTITUTE SENATE BILL NO. 5602 and again asks the House to recede therefrom, and the same is herewith transmitted.

Thomas Hoemann, Secretary

       There being no objection, the rules were suspended and SUBSTITUTE SENATE BILL NO. 5602 was returned to second reading for purpose of amendment.

SECOND READING

       SUBSTITUTE SENATE BILL NO. 5602, By Senate Committee on Agriculture & Rural Economic Development (originally sponsored by Senators Rasmussen and Schoesler; by request of Department of Agriculture)

       Managing livestock nutrients.

       Representative Pettigrew moved the adoption of amendment (626):

        Strike everything after the enacting clause and insert the following:

        "NEW SECTION. Sec. .1 A new section is added to chapter 90.64 RCW to read as follows:

        (1) The legislature finds that a livestock nutrient management program is essential to protecting the quality of the waters of the state and ensuring a healthy and productive livestock industry.

        (2) The departments of agriculture and ecology shall examine their current statutory authorities and provide the legislature with recommendations for statutory changes to fully implement a livestock nutrient management program within the department of agriculture for concentrated animal feeding operations, animal feeding operations, and dairies, as authorized in RCW 90.48.260, 90.64.813, and 90.64.901. In developing recommended statutory changes, the departments shall consult with the livestock nutrient management program development and oversight committee created in RCW 90.64.813. The recommendations must be submitted to the legislature by the departments of agriculture and ecology prior to applying to the environmental protection agency for delegated authority to administer the CAFO portion of the national pollutant discharge elimination system permit program under the federal clean water act.

        (3) For purposes of this act, animal feeding operations (AFOs) and concentrated animal feeding operations (CAFOs) have the same meaning as defined in 40 C.F.R. 122.23.

        (4) This section applies to all operations that meet the definition of an AFO. This section does not apply to true pasture and rangeland operations that do not meet the definition of AFO, however, such operations may have confinement areas that may qualify as an AFO.

        Sec. 2. RCW 90.64.813 and 2003 c 325 s 2 are each amended to read as follows:

        (1) A livestock nutrient management program development and oversight committee is created comprised of the following members((, appointed as follows)):

        (a) The director of the department of agriculture, or the director's designee, who shall serve as committee chair;

        (b) The director of the department of ecology, or the director's designee;

        (c) A representative of the United States environmental protection agency, appointed by the regional director of the agency unless the agency chooses not to be represented on the committee;

        (d) One member from each of the two major caucuses of the house of representatives, appointed by the speaker of the house of representatives, and one member from each of the two major caucuses of the senate, appointed by the president of the senate;

        (e) A representative of commercial shellfish growers, nominated by an organization representing these growers, appointed by the ((governor)) director;

        (((e))) (f) A representative of an environmental interest organization with familiarity and expertise in water quality issues as nominated by a statewide environmental organization, appointed by the ((governor)) director;

        (((f))) (g) A representative of tribal governments as nominated by an organization representing tribal governments((, appointed by the governor));

        (((g))) (h) A representative of Washington State University appointed by the dean of the college of agriculture and home economics;

        (((h))) (i) A representative of the Washington association of conservation districts, appointed by the association's board of officers;

        (((i))) (j) Three representatives of dairy producers nominated by a statewide organization representing dairy producers in the state, appointed by the ((governor)) director;

        (((j))) (k) Two representatives of beef cattle producers nominated by a statewide organization representing beef cattle producers in the state, appointed by the ((governor)) director;

        (((k))) (l) One representative of poultry producers nominated by a statewide organization representing poultry producers in the state, appointed by the ((governor)) director;

        (((l))) (m) One representative of the commercial cattle feedlots nominated by a statewide organization representing commercial cattle feedlots in the state, appointed by the ((governor)) director; ((and))

        (((m))) (n) A representative of any other segment of the livestock industry determined by the director of agriculture to be subject to federal rules regulating animal feeding or concentrated animal feeding operations;

        (o) One representative of horse owners nominated by a statewide organization representing horse owners in the state, appointed by the director; and

        (p) One representative of sheep producers nominated by a statewide organization representing sheep producers in the state, appointed by the director.

        (2) The state department of agriculture shall provide staff for the committee. The department of agriculture may request staff assistance be assigned by the United States environmental protection agency to assist the director in staffing the committee.

        (3) The committee shall establish a work plan that includes a list of tasks and a projected completion date for each task.

        (4) The committee may establish a subcommittee for each of the major industry segments that is covered by the recently adopted federal regulations that pertain to animal feeding operations and concentrated animal feeding operations. The subcommittee shall be composed of selected members of the full committee and additional representatives from that major segment of the livestock industry as determined by the director. The committee shall assign tasks to the subcommittees and shall establish dates for each subcommittee to report back to the full committee.

        (5) The committee shall examine the recently adopted federal regulations that provide for the regulation of animal feeding operations and concentrated animal feeding operations and develop a program to be administered by the department of agriculture that meets the requirements and time frames contained in the federal rules. Elements that the committee shall evaluate include:

        (a) A process for adopting standards and for developing plans for each operation that meet these standards;

        (b) A process for revising current national pollution discharge elimination system permits currently held by livestock operations and to transition these permits into the new system; and

        (c) In consultation with the director, a determination of what other work is needed and what other institutional relationships are needed or desirable. The committee shall consult with representatives of the statewide association of conservation districts regarding any functions or activities that are proposed to be provided through local conservation districts.

        (6) The committee shall review and comment on proposals for grants from the livestock nutrient management account created in RCW 90.64.150.

        (7) The committee shall develop draft proposed legislation that includes:

        (a) Statutory changes, including a timeline to achieve the phased-in levels of regulation under federal law, to comply with the minimum requirements under federal law and the minimum requirements under chapter 90.48 RCW. These changes must meet the requirements necessary to enable the department of agriculture and the department of ecology to pursue the United States environmental protection agency's approval of the transfer of the permitting program as it relates to the concentrated animal feeding operations from the department of ecology to the department of agriculture;

        (b) Statutory changes necessitated by the transfer of functions under chapter 90.64 RCW from the department of ecology to the department of agriculture;

        (c) Continued inspection of dairy operations at least once every two years;

        (d) An outreach and education program to inform the various animal feeding operations and concentrated animal feeding operations of the program's elements; and

        (e) Annual reporting to the legislature on the progress of the state strategy for implementing the animal feeding operation and concentrated animal feeding operation.

        (8) The committee shall provide a report by December 1, 2003, to appropriate committees of the legislature that includes the results of the committee's evaluation under subsection (5) of this section and draft legislation to initiate the program.

        (9) The committee shall evaluate simplified nutrient management planning tools and systematic practices that can be offered to those livestock operations not required to have permits or farm plans. The planning tools and systematic practices may include coordinated resource management and shall differentiate between types of operations, between stock restricted and open range areas, and between regional differences in average annual precipitation. The goal shall be to introduce these practical models through technical assistance, education, and outreach so that all livestock owners will have clear guidance on how to meet basic responsibilities to protect water quality. The committee shall report its recommendations on tools and service delivery options to appropriate committees of the legislature during the September 2005 assembly.

        (10) With respect to the federal requirement that livestock nutrient management plans contain a component ensuring proper management of dead animals, the committee shall review issues concerning routine animal carcass disposal in Washington, including composting, rendering, burying, landfills, and incineration. The committee may appoint a subcommittee including appropriate technical staff from state agencies to undertake this task and make recommendations back to the full committee. At the legislative assembly in September 2005, the department of agriculture, the department of ecology, the state board of health, and committee representatives shall present reports as follows to the appropriate legislative committees:

        (a) The department of ecology shall report on the status of off-site animal composting options that meet the livestock industry's need for disposal alternatives while assuring consumer protection and equity with other composters;

        (b) The department of agriculture shall report on the status of a comprehensive, clearly written guidance document for the livestock industry on alternatives currently available for routine disposal of animal carcasses. The guidance document shall include, at a minimum, the disposal alternatives of rendering, burying, landfills, and composting; and

        (c) The state board of health shall report on the status of rule making that clarifies burial depth, location of burial sites in relation to drinking water wells, and incineration.

        (11) This section expires ((June 30, 2006)) when the federal environmental protection agency delegates authority for the NPDES CAFO program to the department of agriculture. The department of agriculture shall provide notice to the legislature of the date of any such delegation of authority.

        NEW SECTION. Sec. 3. (1) The department of ecology shall develop and maintain a standard protocol for water quality monitoring of the waters of the state within the vicinity of dairies and CAFOs. The protocol shall include sampling methods and procedures and identify the water quality constituents to be monitored.

        (2) The department of ecology shall submit the initial protocol developed according to this section to the appropriate committees of the legislature by December 1, 2005.

        NEW SECTION. Sec. 4. A new section is added to chapter 90.64 RCW to read as follows:

        This section applies to dairies, AFOs, and CAFOs, not required to apply for a permit. Information in plans, records, and reports obtained by state and local agencies from livestock producers under this act regarding (1) number of animals; (2) volume of livestock nutrients generated; (3) number of acres covered by the plan or used for land application of livestock nutrients; (4) livestock nutrients transferred to other persons; and (5) crop yields shall be disclosable in response to a request for public records under chapter 42.17 RCW only in ranges that provide meaningful information to the public while ensuring confidentiality of business information. The department of agriculture shall adopt rules to implement this section in consultation with affected state and local agencies.

        NEW SECTION. Sec. 5. A new section is added to chapter 42.17 RCW to read as follows:

        The following information in plans, records, and reports obtained by state and local agencies from dairies, animal feeding operations, and concentrated animal feeding operations, not required to apply for a national pollutant discharge elimination system permit is disclosable only in ranges that provide meaningful information to the public while ensuring confidentiality of business information regarding: (1) Number of animals; (2) volume of livestock nutrients generated; (3) number of acres covered by the plan or used for land application of livestock nutrients; (4) livestock nutrients transferred to other persons; and (5) crop yields. The department of agriculture shall adopt rules to implement this section in consultation with affected state and local agencies.

        NEW SECTION. Sec. 6. A new section is added to chapter 70.95 RCW, to be codified after RCW 70.95.305, to read as follows:

        (1) By July 1, 2005, the department of ecology and the department of agriculture, in consultation with the department of health, shall make available to livestock producers clearly written guidelines for the composting of bovine and equine carcasses for routine animal disposal.

        (2) Composters of bovine and equine carcasses are exempt from the metals testing and permit requirements under the solid waste handling rules for compost that is distributed off-site if the following conditions are met:

        (a) The carcasses to be composted are not known or suspected to be affected with a prion-protein disease such as bovine spongiform encephalopathy, a spore-forming disease such as anthrax or other diseases designated by the state veterinarian;

        (b) The composter follows the written guidelines provided for in subsection (1) of this section;

        (c) The composter does not accept for composting animal mortalities from other sources not directly affiliated with the composter's operation;

        (d) The composter provides information to the end-user that includes the source of the material; the quality of the compost as to its nutrient content, pathogens, and stability; and the restrictions on use of the compost as stated in (f) of this subsection;

        (e) The composter reports annually to the department the number of bovines and equines and the amounts of other material composted, including the composter's best estimate of the tonnage or yardage involved; and

        (f) The end-user applies the compost only to agricultural lands that are not used for the production of root crops except as prescribed in the guidelines and ensures no compost comes into contact with the crops harvested from the lands where the compost is applied.

        (3) If a compost production facility does not operate in compliance with the terms and conditions established for an exemption in this section, the facility shall be subject to the permitting requirements for solid waste handling under this chapter.

        Sec. 7. RCW 70.95.315 and 1998 c 156 s 7 are each amended to read as follows:

        The department may assess a civil penalty in an amount not to exceed one thousand dollars per day per violation to any person exempt from solid waste permitting in accordance with RCW 70.95.300 ((or)), 70.95.305, or section 6 of this act who fails to comply with the terms and conditions of the exemption. Each such violation shall be a separate and distinct offense, and in the case of a continuing violation, each day's continuance shall be a separate and distinct violation."

        Correct the title.

       Representatives Pettigrew and Holmquist spoke in favor of the adoption of the amendment.

       The amendment was adopted.

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

       Representatives Pettigrew and Holmquist spoke in favor of passage of the bill.

       The Speaker stated the question before the House to be the final passage of Substitute Senate Bill No. 5602, as amended by the House.

ROLL CALL

       The Clerk called the roll on the final passage of Substitute Senate Bill No. 5602, as amended by the House, and the bill passed the House by the following vote: Yeas - 96, Nays - 0, Absent - 0, Excused - 2.

       Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Bailey, Blake, Buck, Buri, Campbell, Chandler, Chase, Clements, Clibborn, Cody, Condotta, Conway, Cox, Crouse, Curtis, Darneille, DeBolt, Dickerson, Dunn, Dunshee, Eickmeyer, Ericks, Ericksen, Flannigan, Fromhold, Grant, Green, Haigh, Haler, Hankins, Hasegawa, Hinkle, Holmquist, Hudgins, Hunt, Hunter, Jarrett, Kagi, Kenney, Kessler, Kilmer, Kirby, Kretz, Kristiansen, Lantz, Linville, Lovick, McCoy, McCune, McDermott, McDonald, McIntire, Miloscia, Moeller, Morrell, Morris, Murray, Newhouse, Nixon, O'Brien, Orcutt, Ormsby, Pearson, Pettigrew, Priest, Quall, Roach, Roberts, Rodne, Santos, Schindler, Sells, Serben, Shabro, Simpson, Skinner, Sommers, Springer, Strow, B. Sullivan, P. Sullivan, Sump, Takko, Talcott, Tom, Upthegrove, Wallace, Walsh, Williams, Wood, Woods and Mr. Speaker - 96.

       Excused: Representatives Appleton and Schual-Berke - 2.

       SUBSTITUTE SENATE BILL NO. 5602, as amended by the House, having received the necessary constitutional majority, was declared passed.

MESSAGES FROM THE SENATE

April 23, 2005

Mr. Speaker:

       The Senate has adopted the report of Conference Committee on ENGROSSED SUBSTITUTE SENATE BILL NO. 5743, and has passed the bill as recommended by the Conference Committee, and the same is herewith transmitted.

Thomas Hoemann, Secretary

April 23, 2005

Mr. Speaker:

       The Senate has adopted the report of Conference Committee on ENGROSSED SUBSTITUTE SENATE BILL NO. 5499, and has passed the bill as recommended by the Conference Committee, and the same is herewith transmitted.

Thomas Hoemann, Secretary

April 23, 2005

Mr. Speaker:

       The Senate concurred in the House amendments to the following bills and passed the bills as amended by the House:

SUBSTITUTE SENATE BILL NO. 5177,

SUBSTITUTE SENATE BILL NO. 5290,

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5581,

SUBSTITUTE SENATE BILL NO. 5610,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5922,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5952,

and the same are herewith transmitted.

Thomas Hoemann, Secretary

April 23, 2005

Mr. Speaker:

       The Senate has passed:

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1044,

SECOND SUBSTITUTE HOUSE BILL NO. 1240,

ENGROSSED HOUSE BILL NO. 1241,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1441,

HOUSE BILL NO. 1485,

HOUSE BILL NO. 2170,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2221,

SUBSTITUTE HOUSE BILL NO. 2289,

SUBSTITUTE SENATE BILL NO. 5227,

ENGROSSED SENATE BILL NO. 6129,

and the same are herewith transmitted.

Thomas Hoemann, Secretary

April 23, 2005

Mr. Speaker:

       The President has signed:

SUBSTITUTE SENATE BILL NO. 5177,

SUBSTITUTE SENATE BILL NO. 5290,

SECOND SUBSTITUTE SENATE BILL NO. 5370,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5499,

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5581,

SUBSTITUTE SENATE BILL NO. 5610,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5743,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5922,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5952,

ENGROSSED SENATE BILL NO. 6096,

and the same are herewith transmitted.

Thomas Hoemann, Secretary

POINT OF PERSONAL PRIVILEGE

       Representative Hudgins: "Thank you, Mr. Speaker. During the day, we have been thanking a number of our support staff throughout this institution. A lot of folks at home see us on the floor discussing, debating, fighting, agreeing and there are a number of people at all levels that support us. I would like to extend a thank you to everybody in the Chief Clerk's Office starting with Bill Wegeleben, Patty Moore, Greg Payne, Tim Sekerak and Sharon Hayward. They have all done an amazing job; they are here whenever we are here. They are usually here when we are not here. I would like to ask everyone to please extend a warm thank you to them for their help this session."

SENATE AMENDMENTS TO HOUSE BILL

April 23, 2005

Mr. Speaker:

       The Senate has passed SUBSTITUTE HOUSE BILL NO. 2304, with the following amendment:

        Strike everything after the enacting clause and insert the following:

        "NEW SECTION. Sec. 1. A new section is added to chapter 43.20B RCW to read as follows:

        (1) When an individual receives medical assistance subject to recovery under this chapter and the individual is the holder of record title to real property or the purchaser under a land sale contract, the department of social and health services may present to the county auditor for recording in the deed and mortgage records of a county a request for notice of transfer or encumbrance of the real property. The department shall adopt a rule providing prior notice and hearing rights to the record title holder or purchaser under a land sale contract.

        (2) The department shall present to the county auditor for recording a termination of request for notice of transfer or encumbrance when, in the judgment of the department, it is no longer necessary or appropriate for the department to monitor transfers or encumbrances related to the real property.

        (3) The department shall adopt by rule a form for the request for notice of transfer or encumbrance and the termination of request for notice of transfer or encumbrance that, at a minimum:

        (a) Contains the name of the public assistance recipient and a departmental case identifier or other appropriate information that links the individual who is the holder of record title to real property or the purchaser under a land sale contract to the individual's public assistance records;

        (b) Contains the legal description of the real property;

        (c) Contains a mailing address for the department to receive the notice of transfer or encumbrance; and

        (d) Complies with the requirements for recording in RCW 36.18.010 for those forms intended to be recorded.

        (4) The department shall pay the recording fee required by the county clerk under RCW 36.18.010.

        (5) The request for notice of transfer or encumbrance described in this section does not affect title to real property and is not a lien on, encumbrance of, or other interest in the real property.

        NEW SECTION. Sec. 2. A new section is added to chapter 64.04 RCW to read as follows:

        (1) If the department of social and health services has filed a request for notice of transfer or encumbrance under section 1 of this act:

        (a) A title insurance company or agent that discovers the presence of a request for notice of transfer or encumbrance when performing a title search on real property shall disclose the presence of the request for notice of transfer or encumbrance in any report preliminary to, or any commitment to offer, a certificate of title insurance for the real property; and

        (b) Any individual who transfers or encumbers real property shall provide the department of social and health services with a notice of transfer or encumbrance. The department of social and health services shall adopt by rule a model form for notice of transfer or encumbrance to be used by a purchaser or lender when notifying the department.

        (2) If the department of social and health services has caused to be recorded a termination of request for notice of transfer or encumbrance in the deed and mortgage records under section 1 of this act, an individual transferring or encumbering the real property is not required to provide the notice of transfer or encumbrance required by subsection (1)(b) of this section.

        Sec. 3. RCW 65.04.050 and 1996 c 143 s 4 are each amended to read as follows:

        Every auditor or recording officer must keep a general index, direct and inverted. The index may be either printed on paper or produced on microfilm or microfiche, or it can be created from a computerized data base and displayed on a video display terminal. Any reference to a prior record location number may be entered in the remarks column. Any property legal description contained in the instrument must be entered in the description of property column of the general index. The direct index shall be divided into eight columns, and with heads to the respective columns, as follows: Date of reception, grantor, grantee, nature of instrument, volume and page where recorded and/or the auditor's file number, remarks, description of property, assessor's property tax parcel or account number. The auditor or recording officer shall correctly enter in such index every instrument concerning or affecting real estate which by law is required to be recorded, the names of grantors being in alphabetical order. The inverted index shall also be divided into eight columns, precisely similar, except that "grantee" shall occupy the second column and "grantor" the third, the names of grantees being in alphabetical order. The auditor or recording officer may combine the direct and indirect indexes into a single index if it contains all the information required to be contained in the separate direct and indirect indexes and the names of all grantors and grantees can be found by a person searching the combined index. For the purposes of this chapter, the term "grantor" means any person conveying or encumbering the title to any property, or any person against whom any lis pendens, judgment, notice of lien, order of sale, execution, writ of attachment, ((or)) claims of separate or community property, or notice for request of transfer or encumbrance under section 1 of this act shall be placed on record. The auditor or recording officer shall also enter in the general index, the name of the party or parties platting a town, village, or addition in the column prescribed for "grantors," describing the grantee in such case as "the public." However, the auditor or recording officer shall not receive or record any such plat or map until it has been approved by the mayor and common council of the municipality in which the property so platted is situated, or if the property be not situated within any municipal corporation, then the plat must be first approved by the county legislative authority. The auditor or recording officer shall not receive for record any plat, map, or subdivision of land bearing a name the same or similar to the name of any map or plat already on record in the office. The auditor or recording officer may establish a name reservation system to preclude the possibility of duplication of names.

        Sec. 4. RCW 6.13.080 and 1993 c 200 s 4 are each amended to read as follows:

        The homestead exemption is not available against an execution or forced sale in satisfaction of judgments obtained:

        (1) On debts secured by mechanic's, laborer's, construction, maritime, automobile repair, materialmen's or vendor's liens arising out of and against the particular property claimed as a homestead;

        (2) On debts secured (a) by security agreements describing as collateral the property that is claimed as a homestead or (b) by mortgages or deeds of trust on the premises that have been executed and acknowledged by the husband and wife or by any unmarried claimant;

        (3) On one spouse's or the community's debts existing at the time of that spouse's bankruptcy filing where (a) bankruptcy is filed by both spouses within a six-month period, other than in a joint case or a case in which their assets are jointly administered, and (b) the other spouse exempts property from property of the estate under the bankruptcy exemption provisions of 11 U.S.C. Sec. 522(d);

        (4) On debts arising from a lawful court order or decree or administrative order establishing a child support obligation or obligation to pay spousal maintenance; ((or))

        (5) On debts owing to the state of Washington for recovery of medical assistance correctly paid on behalf of an individual consistent with 42 U.S.C. Sec. 1396p; or

        (6) On debts secured by a condominium's or homeowner association's lien. In order for an association to be exempt under this provision, the association must have provided a homeowner with notice that nonpayment of the association's assessment may result in foreclosure of the association lien and that the homestead protection under this chapter shall not apply. An association has complied with this notice requirement by mailing the notice, by first class mail, to the address of the owner's lot or unit. The notice required in this subsection shall be given within thirty days from the date the association learns of a new owner, but in all cases the notice must be given prior to the initiation of a foreclosure. The phrase "learns of a new owner" in this subsection means actual knowledge of the identity of a homeowner acquiring title after June 9, 1988, and does not require that an association affirmatively ascertain the identity of a homeowner. Failure to give the notice specified in this subsection affects an association's lien only for debts accrued up to the time an association complies with the notice provisions under this subsection.

        Sec. 5. RCW 43.20B.030 and 2003 c 207 s 1 are each amended to read as follows:

        (1) Except as otherwise provided by law, including subsection (2) of this section, there will be no collection of overpayments and other debts due the department after the expiration of six years from the date of notice of such overpayment or other debt unless the department has commenced recovery action in a court of law or unless an administrative remedy authorized by statute is in place. However, any amount due in a case thus extended shall cease to be a debt due the department at the expiration of ten years from the date of the notice of the overpayment or other debt unless a court-ordered remedy would be in effect for a longer period.

        (2) There will be no collection of debts due the department after the expiration of twenty years from the date a lien is recorded pursuant to RCW 43.20B.080.

        (3) The department, at any time, may accept offers of compromise of disputed claims or may grant partial or total write-off of any debt due the department if it is no longer cost-effective to pursue. The department shall adopt rules establishing the considerations to be made in the granting or denial of a partial or total write-off of debts.

        Sec. 6. RCW 43.20B.080 and 1999 c 354 s 2 are each amended to read as follows:

        (1) The department shall file liens, seek adjustment, or otherwise effect recovery for medical assistance correctly paid on behalf of an individual consistent with 42 U.S.C. Sec. 1396p. The department shall adopt a rule providing for prior notice and hearing rights to the record title holder or purchaser under a land sale contract.

        (2) Liens may be adjusted by foreclosure in accordance with chapter 61.12 RCW.

        (3) In the case of an individual who was fifty-five years of age or older when the individual received medical assistance, the department shall seek adjustment or recovery from the individual's estate, and from nonprobate assets of the individual as defined by RCW 11.02.005, but only for medical assistance consisting of nursing facility services, home and community-based services, other services that the department determines to be appropriate, and related hospital and prescription drug services. Recovery from the individual's estate, including foreclosure of liens imposed under this section, shall be undertaken as soon as practicable, consistent with 42 U.S.C. Sec. 1396p.

        (4) The department shall apply the medical assistance estate recovery law as it existed on the date that benefits were received when calculating an estate's liability to reimburse the department for those benefits.

        (5)(a) The department shall establish procedures consistent with standards established by the federal department of health and human services and pursuant to 42 U.S.C. Sec. 1396p to waive recovery when such recovery would work an undue hardship.

        (b) Recovery of medical assistance from a recipient's estate shall not include property made exempt from claims by federal law or treaty, including exemption for tribal artifacts that may be held by individual Native Americans.

        (6) A lien authorized under ((subsections (1) through (5) of)) this section relates back to attach to any real property that the decedent had an ownership interest in immediately before death and is effective as of that date or date of recording, whichever is earlier.

        (7) The department may enforce a lien authorized under this section against a decedent's life estate or joint tenancy interest in real property held by the decedent immediately prior to his or her death. Such a lien enforced under this subsection shall not end and shall continue as provided in this subsection until the department's lien has been satisfied.

        (a) The value of the life estate subject to the lien shall be the value of the decedent's interest in the property subject to the life estate immediately prior to the decedent's death.

        (b) The value of the joint tenancy interest subject to the lien shall be the value of the decedent's fractional interest the recipient would have owned in the jointly held interest in the property had the recipient and the surviving joint tenants held title to the property as tenants in common on the date of the recipient's death.

        (c) The department may not enforce the lien provided by this subsection against a bona fide purchaser or encumbrancer that obtains an interest in the property after the death of the recipient and before the department records either its lien or the request for notice of transfer or encumbrance as provided by section 1 of this act.

        (d) The department may not enforce a lien provided by this subsection against any property right that vested prior to July 1, 2005.

        (8)(a) Subject to the requirements of 42 U.S.C. Sec. 1396p(a) and the conditions of this subsection (8), the department is authorized to file a lien against the property of an individual prior to his or her death, and to seek adjustment and recovery from the individual's estate or sale of the property subject to the lien, if:

        (i) The individual is an inpatient in a nursing facility, intermediate care facility for individuals with mental retardation, or other medical institution; and

        (ii) The department has determined after notice and opportunity for a hearing that the individual cannot reasonably be expected to be discharged from the medical institution and to return home.

        (b) If the individual is discharged from the medical facility and returns home, the department shall dissolve the lien.

        (9) The department is authorized to adopt rules to effect recovery under this section. The department may adopt by rule later enactments of the federal laws referenced in this section.

        (((8))) (10) It is the responsibility of the department to fully disclose in advance verbally and in writing, in easy to understand language, the terms and conditions of estate recovery to all persons offered long-term care services subject to recovery of payments.

        (((9))) (11) In disclosing estate recovery costs to potential clients, and to family members at the consent of the client, the department shall provide a written description of the community service options.

        (((10) The department of social and health services shall develop an implementation plan for notifying the client or his or her legal representative at least quarterly of the types of services used and the cost of those services (debt) that will be charged against the estate. The estate planning implementation plan shall be submitted by December 12, 1999, to the appropriate standing committees of the house of representatives and the senate, and to the joint legislative and executive task force on long-term care.))"

        On page 1, line 2 of the title, after "debts;" strike the remainder of the title and insert "amending RCW 65.04.050, 6.13.080, 43.20B.030, and 43.20B.080; adding a new section to chapter 43.20B RCW; and adding a new section to chapter 64.04 RCW."

and the same is herewith transmitted.

Thomas Hoemann, Secretary

       There being no objection, the House concurred in the Senate amendment to SUBSTITUTE HOUSE BILL NO. 2304 and advanced the bill as amended by the Senate to final passage.

FINAL PASSAGE OF HOUSE BILL

AS SENATE AMENDED

       Representatives Cody and Alexander spoke in favor the passage of the bill.

       The Speaker (Representative Lovick presiding) stated the question before the House to be final passage of Substitute House Bill No. 2304, as amended by the Senate.

ROLL CALL

       The Clerk called the roll on the final passage of Substitute House Bill No. 2304,, as amended by the Senate, and the bill passed the House by the following vote: Yeas - 54, Nays - 42, Absent - 0, Excused - 2.

       Voting yea: Representatives Blake, Campbell, Chase, Clibborn, Cody, Conway, Darneille, Dickerson, Dunshee, Eickmeyer, Ericks, Flannigan, Fromhold, Grant, Green, Haigh, Hasegawa, Hudgins, Hunt, Hunter, Kagi, Kenney, Kessler, Kilmer, Kirby, Lantz, Linville, Lovick, McCoy, McDermott, McIntire, Miloscia, Moeller, Morrell, Morris, Murray, O'Brien, Ormsby, Pettigrew, Quall, Roberts, Santos, Sells, Simpson, Sommers, Springer, B. Sullivan, P. Sullivan, Takko, Upthegrove, Wallace, Williams, Wood and Mr. Speaker - 54.

       Voting nay: Representatives Ahern, Alexander, Anderson, Armstrong, Bailey, Buck, Buri, Chandler, Clements, Condotta, Cox, Crouse, Curtis, DeBolt, Dunn, Ericksen, Haler, Hankins, Hinkle, Holmquist, Jarrett, Kretz, Kristiansen, McCune, McDonald, Newhouse, Nixon, Orcutt, Pearson, Priest, Roach, Rodne, Schindler, Serben, Shabro, Skinner, Strow, Sump, Talcott, Tom, Walsh and Woods - 42.

       Excused: Representatives Appleton and Schual-Berke - 2.

       SUBSTITUTE HOUSE BILL NO. 2304, as amended by the Senate having received the constitutional majority, was declared passed.

MESSAGE FROM THE SENATE

April 23, 2005

Mr. Speaker:

       The Senate has adopted the report of Conference Committee on ENGROSSED SUBSTITUTE HOUSE BILL NO. 2266, and has passed the bill as recommended by the Conference Committee, and the same is herewith transmitted.

Thomas Hoemann, Secretary

REPORT OF CONFERENCE COMMITTEE

April 22, 2005

Mr. Speaker:

       We of your Conference Committee, to whom was referred ENGROSSED SUBSTITUTE HOUSE BILL NO. 2266, concerning access to certain precursor drugs, have had the same under consideration and we recommend that:

All previous amendments not be adopted and that the attached striking amendment (S-3481.3) be adopted

and that the bill do pass as recommended by the Conference Committee.

Senator Kline      Representative Morrell

Senator Johnson  Representative Campbell

Senator Kastama Representative Curtis

        Strike everything after the enacting clause and insert the following:

        "NEW SECTION. Sec. 1. Restricting access to certain precursor drugs used to manufacture methamphetamine to ensure that they are only sold at retail to individuals who will use them for legitimate purposes upon production of proper identification is an essential step to controlling the manufacture of methamphetamine.

        NEW SECTION. Sec. 2. A new section is added to chapter 69.43 RCW to read as follows:

        (1) For purposes of this section, "traditional Chinese herbal practitioner" means a person who is certified as a diplomate in Chinese herbology from the national certification commission for acupuncture and oriental medicine or who has received a certificate in Chinese herbology from a school accredited by the accreditation council on acupuncture and oriental medicine.

        (2) A pharmacy licensed by, or shopkeeper or itinerant vendor registered with, the department of health under chapter 18.64 RCW, or an employee thereof, a practitioner as defined in RCW 18.64.011, or a traditional Chinese herbal practitioner may not knowingly sell, transfer, or otherwise furnish to any person a product at retail that he or she knows to contain any detectable quantity of ephedrine, pseudoephedrine, or phenylpropanolamine, or their salts, isomers, or salts of isomers, without first obtaining photo identification of the person that shows the date of birth of the person.

        (3) A person buying or receiving a product at retail containing any detectable quantity of ephedrine, pseudoephedrine, or phenylpropanolamine, or their salts, isomers, or salts of isomers, from a pharmacy licensed by, or shopkeeper or itinerant vendor registered with, the department of health under chapter 18.64 RCW, or an employee thereof, a practitioner as defined in RCW 18.64.011, or a traditional Chinese herbal practitioner must first produce photo identification of the person that shows the date of birth of the person.

        (4) Any product containing any detectable quantity of ephedrine, pseudoephedrine, or phenylpropanolamine, or their salts, isomers, or salts of isomers, shall be kept in a central location that is not accessible by customers without assistance of an employee of the merchant.

        (5) No pharmacy licensed by, or shopkeeper or itinerant vendor registered with, the department of health under chapter 18.64 RCW, or an employee thereof, a practitioner as defined in RCW 18.64.011, or a traditional Chinese herbal practitioner may sell any product containing any detectable quantity of ephedrine, pseudoephedrine, or phenylpropanolamine, or their salts, isomers, or salts of isomers, to a person that is not at least eighteen years old.

        (6) The board of pharmacy, by rule, may exempt products containing ephedrine, pseudoephedrine, or phenylpropanolamine, or their salts, isomers, or salts of isomers, in combination with another active ingredient from the requirements of this section if they are found not to be used in the illegal manufacture of methamphetamine or other controlled dangerous substances. A manufacturer of a drug product may apply for removal of the product from the requirements of this section if the product is determined by the board to have been formulated in such a way as to effectively prevent the conversion of the active ingredient into methamphetamine. The burden of proof for exemption is upon the person requesting the exemption. The petitioner shall provide the board with evidence that the product has been formulated in such a way as to serve as an effective general deterrent to the conversion of pseudoephedrine into methamphetamine. The evidence must include the furnishing of a valid scientific study, conducted by an independent, professional laboratory and evincing professional quality chemical analysis. Factors to be considered in whether a product should be excluded from this section include but are not limited to:

        (a) Ease with which the product can be converted to methamphetamine;

        (b) Ease with which ephedrine, pseudoephedrine, or phenylpropanolamine is extracted from the substance and whether it forms an emulsion, salt, or other form;

        (c) Whether the product contains a "molecular lock" that renders it incapable of being converted into methamphetamine;

        (d) Presence of other ingredients that render the product less likely to be used in the manufacture of methamphetamine; and

        (e) Any pertinent data that can be used to determine the risk of the substance being used in the illegal manufacture of methamphetamine or any other controlled substance.

        (7) Nothing in this section applies:

        (a) To any product containing ephedrine, pseudoephedrine, or phenylpropanolamine, or their salts, isomers, or salts of isomers that is not the only active ingredient and that is in liquid, liquid capsule, or gel capsule form;

        (b) To the sale of a product that may only be sold upon the presentation of a prescription;

        (c) To the sale of a product by a traditional Chinese herbal practitioner to a patient; or

        (d) When the details of the transaction are recorded in a pharmacy profile individually identified with the recipient and maintained by a licensed pharmacy.

        (8)(a) No pharmacy licensed by, or shopkeeper or itinerant vendor registered with, the department of health under chapter 18.64 RCW, a practitioner as defined in RCW 18.64.011, or a traditional Chinese herbal practitioner may retaliate against any employee that has made a good faith attempt to comply with the requirements of this section by requesting that a customer present photo identification, making a reasonable effort to determine the customer's age.

        (b) No pharmacy licensed by, or shopkeeper or itinerant vendor registered with, the department of health under chapter 18.64 RCW, a practitioner as defined in RCW 18.64.011, or a traditional Chinese herbal practitioner is subject to prosecution under subsection (9) of this section if they made a good faith attempt to comply with the requirements of this section by requesting that a customer present photo identification, making a reasonable effort to determine the customer's age.

        (9) A violation of this section is a gross misdemeanor.

        NEW SECTION. Sec. 3. A new section is added to chapter 69.43 RCW to read as follows:

        (1) The Washington association of sheriffs and police chiefs or the Washington state patrol may petition the state board of pharmacy to apply the log requirements in section 8 of this act to one or more products that contain ephedrine, pseudoephedrine, or phenylpropanolamine, or their salts, isomers, or salts of isomers, that is not the only active ingredient and that is in liquid, liquid capsule, or gel capsule form. The petition shall establish that:

        (a) Ephedrine, pseudoephedrine, or phenylpropanolamine can be effectively extracted from the product and converted into methamphetamine or another controlled dangerous substance; and

        (b) Law enforcement, the Washington state patrol, or the department of ecology are finding substantial evidence that the product is being used for the illegal manufacture of methamphetamine or another controlled dangerous substance.

        (2) The board of pharmacy shall adopt rules when a petition establishes that requiring the application of the log requirements in section 8 of this act to the sale of the product at retail is warranted based upon the effectiveness and extent of use of the product for the illegal manufacture of methamphetamine or other controlled dangerous substances and the extent of the burden of any restrictions upon consumers. The board of pharmacy may adopt emergency rules to apply the log requirements to the sale of a product when the petition establishes that the immediate restriction of the product is necessary in order to protect public health and safety.

        Sec. 4. RCW 69.43.110 and 2004 c 52 s 5 are each amended to read as follows:

        (1) It is unlawful for a pharmacy licensed by, or shopkeeper or itinerant vendor registered with, the department of health under chapter 18.64 RCW, or an employee thereof, or a practitioner as defined in RCW 18.64.011, knowingly to sell, transfer, or to otherwise furnish, in a single transaction:

        (a) More than ((three)) two packages of one or more products that he or she knows to contain ephedrine, pseudoephedrine, or phenylpropanolamine, their salts, isomers, or salts of isomers; or

        (b) A single package of any product that he or she knows to contain more than three grams of ephedrine, pseudoephedrine, or phenylpropanolamine, their salts, isomers, or salts of isomers, or a combination of any of these substances.

        (2) It is unlawful for a person who is not a manufacturer, wholesaler, pharmacy, practitioner, shopkeeper, or itinerant vendor licensed by or registered with the department of health under chapter 18.64 RCW to purchase or acquire, in any twenty-four hour period, more than the quantities of the substances specified in subsection (1) of this section.

        (3) It is unlawful for any person to sell or distribute any of the substances specified in subsection (1) of this section unless the person is licensed by or registered with the department of health under chapter 18.64 RCW, or is a practitioner as defined in RCW 18.64.011.

        (4) A violation of this section is a gross misdemeanor.

        Sec. 5. RCW 18.64.044 and 2004 c 52 s 2 are each amended to read as follows:

        (1) A shopkeeper registered as provided in this section may sell nonprescription drugs, if such drugs are sold in the original package of the manufacturer.

        (2) Every shopkeeper not a licensed pharmacist, desiring to secure the benefits and privileges of this section, is hereby required to register as a shopkeeper through the master license system, and he or she shall pay the fee determined by the secretary for registration, and on a date to be determined by the secretary thereafter the fee determined by the secretary for renewal of the registration; and shall at all times keep said registration or the current renewal thereof conspicuously exposed in the location to which it applies. In event such shopkeeper's registration is not renewed by the master license expiration date, no renewal or new registration shall be issued except upon payment of the registration renewal fee and the master license delinquency fee under chapter 19.02 RCW. This registration fee shall not authorize the sale of legend drugs or controlled substances.

        (3) The registration fees determined by the secretary under subsection (2) of this section shall not exceed the cost of registering the shopkeeper.

        (4) Any shopkeeper who shall vend or sell, or offer to sell to the public any such nonprescription drug or preparation without having registered to do so as provided in this section, shall be guilty of a misdemeanor and each sale or offer to sell shall constitute a separate offense.

        (5) A shopkeeper who is not a licensed pharmacy may purchase products containing any detectable quantity of ephedrine, pseudoephedrine, or phenylpropanolamine, or their salts, isomers, or salts of isomers, only from a wholesaler licensed by the department under RCW 18.64.046 or from a manufacturer licensed by the department under RCW 18.64.045. The board shall issue a warning to a shopkeeper who violates this subsection, and may suspend or revoke the registration of the shopkeeper for a subsequent violation.

        (6) A shopkeeper who has purchased products containing any detectable quantity of ephedrine, pseudoephedrine, or phenylpropanolamine, or their salts, isomers, or salts of isomers, in a suspicious transaction as defined in RCW 69.43.035, is subject to the following requirements:

        (a) The shopkeeper may not sell any quantity of ephedrine, pseudoephedrine, or phenylpropanolamine, or their salts, isomers, or salts of isomers, if the total monthly sales of these products exceed ten percent of the shopkeeper's total prior monthly sales of nonprescription drugs in March through October. In November through February, the shopkeeper may not sell any quantity of ephedrine, pseudoephedrine, or phenylpropanolamine, or their salts, isomers, or salts of isomers, if the total monthly sales of these products exceed twenty percent of the shopkeeper's total prior monthly sales of nonprescription drugs. For purposes of this section, "monthly sales" means total dollars paid by buyers. The board may suspend or revoke the registration of a shopkeeper who violates this subsection.

        (b) The shopkeeper shall maintain inventory records of the receipt and disposition of nonprescription drugs, utilizing existing inventory controls if an auditor or investigator can determine compliance with (a) of this subsection, and otherwise in the form and manner required by the board. The records must be available for inspection by the board or any law enforcement agency and must be maintained for two years. The board may suspend or revoke the registration of a shopkeeper who violates this subsection. For purposes of this subsection, "disposition" means the return of product to the wholesaler or distributor.

        Sec. 6. RCW 18.64.046 and 2004 c 52 s 3 are each amended to read as follows:

        (1) The owner of each place of business which sells legend drugs and nonprescription drugs, or nonprescription drugs at wholesale shall pay a license fee to be determined by the secretary, and thereafter, on or before a date to be determined by the secretary as provided in RCW 43.70.250 and 43.70.280, a like fee to be determined by the secretary, for which the owner shall receive a license of location from the department, which shall entitle such owner to either sell legend drugs and nonprescription drugs or nonprescription drugs at wholesale at the location specified for the period ending on a date to be determined by the secretary, and each such owner shall at the time of payment of such fee file with the department, on a blank therefor provided, a declaration of ownership and location, which declaration of ownership and location so filed as aforesaid shall be deemed presumptive evidence of the ownership of such place of business mentioned therein. It shall be the duty of the owner to notify immediately the department of any change of location and ownership and to keep the license of location or the renewal thereof properly exhibited in such place of business.

        (2) Failure to conform with this section is a misdemeanor, and each day that the failure continues is a separate offense.

        (3) In event the license fee remains unpaid on the date due, no renewal or new license shall be issued except upon compliance with administrative procedures, administrative requirements, and fees determined as provided in RCW 43.70.250 and 43.70.280.

        (4) No wholesaler may sell any quantity of drug products containing ephedrine, pseudoephedrine, phenylpropanolamine, or their salts, isomers, or salts of isomers, if the total monthly sales of these products to persons within the state of Washington exceed five percent of the wholesaler's total prior monthly sales of nonprescription drugs to persons within the state in March through October. In November through February, no wholesaler may sell any quantity of drug products containing ephedrine, pseudoephedrine, or phenylpropanolamine, or their salts, isomers, or salts of isomers if the total monthly sales of these products to persons within the state of Washington exceed ten percent of the wholesaler's total prior monthly sales of nonprescription drugs to persons within the state. For purposes of this section, monthly sales means total dollars paid by buyers. The board may suspend or revoke the license of any wholesaler that violates this section.

        (5) The board may exempt a wholesaler from the limitations of subsection (4) of this section if it finds that the wholesaler distributes nonprescription drugs only through transactions between divisions, subsidiaries, or related companies when the wholesaler and the retailer are related by common ownership, and that neither the wholesaler nor the retailer has a history of suspicious transactions in precursor drugs as defined in RCW 69.43.035.

        (6) The requirements for a license apply to all persons, in Washington and outside of Washington, who sell both legend drugs and nonprescription drugs and to those who sell only nonprescription drugs, at wholesale to pharmacies, practitioners, and shopkeepers in Washington.

        (7)(a) No wholesaler may sell any ((quantity)) product containing any detectable quantity of ephedrine, pseudoephedrine, phenylpropanolamine, or their salts, isomers, or salts of isomers, to any person in Washington other than a pharmacy licensed under this chapter, a shopkeeper or itinerant vendor registered under this chapter, ((or)) a practitioner as defined in RCW 18.64.011, or a traditional Chinese herbal practitioner as defined in section 2 of this act.

        (b) A violation of this subsection is punishable as a class C felony according to chapter 9A.20 RCW, and each sale in violation of this subsection constitutes a separate offense.

        Sec. 7. RCW 18.64.047 and 2004 c 52 s 4 are each amended to read as follows:

        (1) Any itinerant vendor or any peddler of any nonprescription drug or preparation for the treatment of disease or injury, shall pay a registration fee determined by the secretary on a date to be determined by the secretary as provided in RCW 43.70.250 and 43.70.280. The department may issue a registration to such vendor on an approved application made to the department.

        (2) Any itinerant vendor or peddler who shall vend or sell, or offer to sell to the public any such nonprescription drug or preparation without having registered to do so as provided in this section, is guilty of a misdemeanor and each sale or offer to sell shall constitute a separate offense.

        (3) In event the registration fee remains unpaid on the date due, no renewal or new registration shall be issued except upon compliance with administrative procedures, administrative requirements, and fees determined as provided in RCW 43.70.250 and 43.70.280. This registration shall not authorize the sale of legend drugs or controlled substances.

        (4) An itinerant vendor may purchase products containing any detectable quantity of ephedrine, pseudoephedrine, or phenylpropanolamine, or their salts, isomers, or salts of isomers only from a wholesaler licensed by the department under RCW 18.64.046 or from a manufacturer licensed by the department under RCW 18.64.045. The board shall issue a warning to an itinerant vendor who violates this subsection, and may suspend or revoke the registration of the vendor for a subsequent violation.

        (5) An itinerant vendor who has purchased products containing any detectable quantity of ephedrine, pseudoephedrine, or phenylpropanolamine, or their salts, isomers, or salts of isomers, in a suspicious transaction as defined in RCW 69.43.035, is subject to the following requirements:

        (a) The itinerant vendor may not sell any quantity of ephedrine, pseudoephedrine, or phenylpropanolamine, or their salts, isomers, or salts of isomers, if the total monthly sales of these products exceed ten percent of the vendor's total prior monthly sales of nonprescription drugs in March through October. In November through February, the vendor may not sell any quantity of ephedrine, pseudoephedrine, or phenylpropanolamine, or their salts, isomers, or salts of isomers, if the total monthly sales of these products exceed twenty percent of the vendor's total prior monthly sales of nonprescription drugs. For purposes of this section, "monthly sales" means total dollars paid by buyers. The board may suspend or revoke the registration of an itinerant vendor who violates this subsection.

        (b) The itinerant vendor shall maintain inventory records of the receipt and disposition of nonprescription drugs, utilizing existing inventory controls if an auditor or investigator can determine compliance with (a) of this subsection, and otherwise in the form and manner required by the board. The records must be available for inspection by the board or any law enforcement agency and must be maintained for two years. The board may suspend or revoke the registration of an itinerant vendor who violates this subsection. For purposes of this subsection, "disposition" means the return of product to the wholesaler or distributor.

        NEW SECTION. Sec. 8. A new section is added to chapter 69.43 RCW to read as follows:

        (1) The state board of pharmacy, using procedures under chapter 34.05 RCW, shall implement and conduct a statewide pilot project requiring the collection and maintenance of written or electronic logs or other alternative means of recording retail transactions involving ephedrine, pseudoephedrine, or phenylpropanolamine. The rules implementing the pilot project shall be in place by January 1, 2006.

        (2) The pilot project shall be designed to address:

        (a) Whether a log or other means of recording a transaction is an effective law enforcement tool;

        (b) What information is needed to make logs or other means of recording a transaction useful as a deterrent to criminal activity;

        (c) The most effective method of obtaining, recording, and storing log or other electronic data in the least intrusive manner available;

        (d) How long the information recorded in the logs or other means of recording a transaction should be maintained; and

        (e) How logs or other means of recording a transaction can be most effectively transmitted to law enforcement and the state board of pharmacy.

        (3) The board shall convene a work group to evaluate the data collected during the pilot project. The work group shall consist of:

        (a) One representative from law enforcement appointed by the Washington association of sheriffs and police chiefs;

        (b) One representative from the Washington state patrol;

        (c) One representative appointed by the Washington association of prosecuting attorneys;

        (d) One representative appointed by the office of the attorney general;

        (e) One representative appointed by the state board of pharmacy; and

        (f) Two representatives from the retail industry.

        (4) The state board of pharmacy shall begin data collection for the pilot project no later than January 1, 2006, and report to the legislature no later than November 1, 2007, regarding the findings of the work group along with any recommendations or proposed legislation.

        (5) Any orders and rules adopted under this section not in conflict with state law continue in effect until modified, superseded, or repealed. The board may implement rule changes based upon the results of the pilot project and recommendations of the work group.

        (6)(a) The records required by this section are for the confidential use of the pharmacy, shopkeeper, or itinerant vendor, except that:

        (i) Every pharmacy, shopkeeper, or itinerant vendor shall produce the records in court whenever lawfully required to do so;

        (ii) The records shall be open for inspection by the board of pharmacy; and

        (iii) The records shall be open for inspection by any general or limited authority Washington peace officer to enforce the provisions of this chapter.

        (b) A person violating this subsection is guilty of a misdemeanor.

        NEW SECTION. Sec. 9. Each county sheriff shall compile and maintain a record of commercial products containing ephedrine, pseudoephedrine, or phenylpropanolamine and packaging found at methamphetamine laboratory sites. The data shall be forwarded to the Washington association of sheriffs and police chiefs and shall be reported to the legislature by November 1, 2007, and annually thereafter.

        NEW SECTION. Sec. 10. 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. 11. (1) Section 2 of this act takes effect October 1, 2005.

        (2) Sections 1, 3 through 7, 9, and 10 of this act take effect January 1, 2006.

        (3) Section 8 of this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately."

        On page 1, line 2 of the title, after "phenylpropanolamine;" strike the remainder of the title and insert "amending RCW 69.43.110, 18.64.044, 18.64.046, and 18.64.047; adding new sections to chapter 69.43 RCW; creating new sections; prescribing penalties; providing effective dates; and declaring an emergency."

       There being no objection, the House adopted the conference committee report on ENGROSSED SUBSTITUTE HOUSE BILL NO. 2266 and advanced the bill as recommended by the conference committee to final passage.

FINAL PASSAGE

AS RECOMMENDED BY

CONFERENCE COMMITTEE

       Representatives Campbell, Morrell, McDonald, Ahern, Curtis, Shabro and Wallace spoke in favor of the passage of the bill as recommended by the conference committee.

       Representative Nixon spoke against the passage of the bill as recommended by the conference committee.

       The Speaker (Representative Lovick presiding) stated the question before the House to be final passage of Engrossed Substitute House Bill No. 2266 as recommended by the conference committee.

ROLL CALL

       The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 2266, as recommended by the Conference Committee, and the bill passed the House by the following vote: Yeas - 91, Nays - 5, Absent - 0, Excused - 2.

       Voting yea: Representatives Ahern, Alexander, Armstrong, Blake, Buck, Buri, Campbell, Chase, Clements, Clibborn, Cody, Condotta, Conway, Cox, Crouse, Curtis, Darneille, DeBolt, Dickerson, Dunn, Dunshee, Eickmeyer, Ericks, Ericksen, Flannigan, Fromhold, Grant, Green, Haigh, Haler, Hankins, Hasegawa, Hinkle, Holmquist, Hudgins, Hunt, Hunter, Jarrett, Kagi, Kenney, Kessler, Kilmer, Kirby, Kristiansen, Lantz, Linville, Lovick, McCoy, McCune, McDermott, McDonald, McIntire, Miloscia, Moeller, Morrell, Morris, Murray, Newhouse, O'Brien, Orcutt, Ormsby, Pearson, Pettigrew, Priest, Quall, Roach, Roberts, Rodne, Santos, Schindler, Sells, Serben, Shabro, Simpson, Skinner, Sommers, Springer, Strow, B. Sullivan, P. Sullivan, Sump, Takko, Talcott, Tom, Upthegrove, Wallace, Walsh, Williams, Wood, Woods and Mr. Speaker - 91.

       Voting nay: Representatives Anderson, Bailey, Chandler, Kretz and Nixon - 5.

       Excused: Representatives Appleton and Schual-Berke - 2.

       ENGROSSED SUBSTITUTE HOUSE BILL NO. 2266, as recommended by the Conference Committee, having received the constitutional majority, was declared passed.

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

REPORTS OF STANDING COMMITTEES

April 21, 2005

2SSB 5916   Prime Sponsor, Senate Committee On Ways & Means: Exempting clean alternative fuel vehicles from sales and use tax. Reported by Committee on Finance

MAJORITY recommendation: Do pass. Signed by Representatives McIntire, Chairman; Hunter, Vice Chairman; Orcutt, Ranking Minority Member; Roach, Assistant Ranking Minority Member; Ahern; Conway; Ericksen; Hasegawa and Santos.

       Passed to Committee on Rules for second reading.

{{37755}}       There being no objection, the bill listed on the day's committee reports sheet under the fifth order of business was referred to the committee so designated.

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

       There being no objection, the House adjourned until 10:00 a.m., April 24, 2005, the 105th Day of the Regular Session.

FRANK CHOPP, Speaker

RICHARD NAFZIGER, Chief Clerk