BP BHEAD INT H [atlas:bill]

AN ACT Relating to disasters and emergencies; amending RCW 38.52.030; reenacting and amending RCW 43.79A.040; adding a new section to chapter 43.31 RCW; adding a new section to chapter 19.182 RCW; adding a new section to chapter 82.04 RCW; adding new sections to chapter 38.52 RCW; adding a new section to chapter 48.14 RCW; creating new sections; and providing for submission of certain sections of this act to a vote of the people.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. FINDINGS AND INTENT. The legislature finds that natural disasters and emergencies affect the health, safety, and well-being of Washington residents. The legislature established a program to prepare for and address disasters and emergencies in chapter 38.52 RCW and other statutes. Recent emergencies and disasters involving landslides affecting a large number of people were not typical; rather than happening suddenly and affecting improvements to real property, the landslide disasters occurred and are occurring over time and are destroying not only the improvements but are moving the land as well. The legislature intends to enhance responses to disasters and emergencies, including unusual disasters, through this act by: (1) Improving coordination of disaster and emergency assistance; (2) providing counseling and ombudsman services for homeowners and others who are victims; (3) protecting victims' credit ratings; (4) providing tax credits for lenders who forgive loans in landslide disasters; and (5) creating an emergency management and assistance fund.

Sec. 2. RCW 38.52.030 and 1997 c 49 s 2 are each amended to read as follows:

IMPROVING COORDINATION OF DISASTER ASSISTANCE. (1) The director may employ such personnel and may make such expenditures within the appropriation therefor, or from other funds made available for purposes of emergency management, as may be necessary to carry out the purposes of this chapter.

(2)(a) The director, subject to the direction and control of the governor, shall be responsible to the governor for carrying out the program for emergency management of this state. The director shall coordinate the activities of all organizations for emergency management within the state, and shall maintain liaison with and cooperate with emergency management agencies and organizations of other states and of the federal government, and shall have such additional authority, duties, and responsibilities authorized by this chapter, as may be prescribed by the governor.

(b)(i) To improve coordination and communication when an emergency or disaster is not a flood, earthquake, or windstorm, but is unusual or occurring over a long period of time, such as a large landslide, or whenever the director deems it appropriate, the director may form a task force which includes a designated member from the emergency management division who shall chair the task force, the department of community, trade, and economic development, any other state agency at the request of the director, any local organization or organizations under RCW 38.52.070, and the local government or governments where the emergency or disaster occurred or is occurring. The director may request that the federal emergency management agency, the small business administration, or any other federal agency participate in the task force.

(ii) The task force shall focus on enhancing the coordination of emergency response, hazard mitigation efforts, environmental issues, and disaster relief and assistance between the state, local agencies, the private sector, and disaster victims, particularly where the initial emergency response has successfully stabilized the situation and addressed immediate public health and safety issues, but the impacts of the emergency or disaster, or the emergency or disaster itself, are ongoing over a long period of time. The state agencies shall collaborate with one another to most effectively address the emergency or disaster. Communicating with and providing assistance to local agencies, local governments, and disaster victims over time shall be a priority of the task force, particularly facilitating communication and streamlining problem identification and resolution.

(3) The director shall develop and maintain a comprehensive, all-hazard emergency plan for the state which shall include an analysis of the natural, technological, or human caused hazards which could affect the state of Washington, and shall include the procedures to be used during emergencies for coordinating local resources, as necessary, and the resources of all state agencies, departments, commissions, and boards. The comprehensive emergency management plan shall direct the department in times of state emergency to administer and manage the state's emergency operations center. This will include representation from all appropriate state agencies and be available as a single point of contact for the authorizing of state resources or actions, including emergency permits. The comprehensive emergency management plan must specify the use of the incident command system for multiagency/multijurisdiction operations. The comprehensive, all-hazard emergency plan authorized under this subsection may not include preparation for emergency evacuation or relocation of residents in anticipation of nuclear attack. This plan shall be known as the comprehensive emergency management plan.

(4) In accordance with the comprehensive emergency management plans and the programs for the emergency management of this state, the director shall procure supplies and equipment, institute training programs and public information programs, and shall take all other preparatory steps, including the partial or full mobilization of emergency management organizations in advance of actual disaster, to insure the furnishing of adequately trained and equipped forces of emergency management personnel in time of need.

(5) The director shall make such studies and surveys of the industries, resources, and facilities in this state as may be necessary to ascertain the capabilities of the state for emergency management, and shall plan for the most efficient emergency use thereof.

(6) The emergency management council shall advise the director on all aspects of the communications and warning systems and facilities operated or controlled under the provisions of this chapter.

(7) The director, through the state enhanced 911 coordinator, shall coordinate and facilitate implementation and operation of a state-wide enhanced 911 emergency communications network.

(8) The director shall appoint a state coordinator of search and rescue operations to coordinate those state resources, services and facilities (other than those for which the state director of aeronautics is directly responsible) requested by political subdivisions in support of search and rescue operations, and on request to maintain liaison with and coordinate the resources, services, and facilities of political subdivisions when more than one political subdivision is engaged in joint search and rescue operations.

(9) The director, subject to the direction and control of the governor, shall prepare and administer a state program for emergency assistance to individuals within the state who are victims of a natural, technological, or human caused disaster, as defined by RCW 38.52.010(6). Such program may be integrated into and coordinated with disaster assistance plans and programs of the federal government which provide to the state, or through the state to any political subdivision thereof, services, equipment, supplies, materials, or funds by way of gift, grant, or loan for purposes of assistance to individuals affected by a disaster. Further, such program may include, but shall not be limited to, grants, loans, or gifts of services, equipment, supplies, materials, or funds of the state, or any political subdivision thereof, to individuals who, as a result of a disaster, are in need of assistance and who meet standards of eligibility for disaster assistance established by the department of social and health services: PROVIDED, HOWEVER, That nothing herein shall be construed in any manner inconsistent with the provisions of Article VIII, section 5 or section 7 of the Washington state Constitution.

(10) The director shall appoint a state coordinator for radioactive and hazardous waste emergency response programs. The coordinator shall consult with the state radiation control officer in matters relating to radioactive materials. The duties of the state coordinator for radioactive and hazardous waste emergency response programs shall include:

(a) Assessing the current needs and capabilities of state and local radioactive and hazardous waste emergency response teams on an ongoing basis;

(b) Coordinating training programs for state and local officials for the purpose of updating skills relating to emergency mitigation, preparedness, response, and recovery;

(c) Utilizing appropriate training programs such as those offered by the federal emergency management agency, the department of transportation and the environmental protection agency; and

(d) Undertaking other duties in this area that are deemed appropriate by the director.

NEW SECTION. Sec. 3. A new section is added to chapter 43.31 RCW to read as follows:

COUNSELING AND OMBUDSMAN SERVICES FOR VICTIMS. (1) The legislature finds that, in addition to existing emergency and disaster programs, homeowners who are victims of emergencies or disasters may need assistance in dealing with their lenders and insurers when their homes are temporarily or permanently uninhabitable as a result of the emergency or disaster. This is especially true if the disaster is unusual or occurs over a long period of time. The legislature also finds that the earlier these services can be provided, the more effective they are.

(2) The department of community, trade, and economic development, with the assistance of other agencies, may provide ombudsman and counseling services to homeowners who are victims of emergencies or disasters in dealing with their lenders, insurers, or other organizations. The housing finance commission, the office of the insurance commissioner, the department of financial institutions, and other state agencies shall assist the department of community, trade, and economic development when requested, and may initiate services on their own if the department of community, trade, and economic development does not provide ombudsman and counseling services. The legislature intends that these homeowner related ombudsman and counseling services be coordinated, preferably by the department of community, trade, and economic development. The department may request other public agencies and private organizations to assist in its counseling and ombudsman services.

(3) The ombudsman and counseling services may, to the extent resources are available, assist victims of an emergency or disaster with their housing needs and other issues caused by the emergency or disaster.

NEW SECTION. Sec. 4. A new section is added to chapter 19.182 RCW to read as follows:

PROTECTING VICTIMS' CREDIT RATINGS. Whenever a lender is notified that the single-family residence securing the loan is in a federally declared disaster area or is in an area that is proclaimed an emergency by the governor, and the loan was not delinquent at the time the disaster or emergency began and the emergency or disaster is the primary reason for any delinquency, the lender shall notify the credit reporting agency that the loan is delinquent due to a declared disaster or proclaimed emergency.

NEW SECTION. Sec. 5. A new section is added to chapter 82.04 RCW to read as follows:

TAX CREDIT FOR FORGIVING LOANS IN LANDSLIDE DISASTERS. (1) In computing the tax imposed under this chapter, a credit is allowed for each financial institution for each loan in which part or all of the principal balance owed is forgiven to assist the victim of a landslide in an area that has been proclaimed an emergency by the governor. The loan must be secured by a home that is in the boundaries of the declared emergency area and the home is or will be a total loss or is or will be permanently uninhabitable.

(2)(a) The credit is equal to one-quarter of the amount forgiven, up to a maximum credit per loan of fifty thousand dollars.

(b) If less than the total principal balance is forgiven, the financial institution may claim the credit only if the partial forgiveness is part of a plan to assist multiple victims of the emergency and involves multiple financial institutions in a pooling or other arrangement.

(c) The department may request verification from the military department or other state agency that the loan is secured by a home in the proclaimed emergency area, that (b) of this subsection applies, or may request other reasonable verification.

(3) For purposes of this section:

(a) "Financial institution" means any person to which a loan is owed.

(b) "Loan" means an obligation secured by a deed of trust or mortgage on a single-family residence that is located in a state declared emergency area resulting from a landslide.

(4) This section applies to all loans or parts of loans forgiven after the effective date of this section.

(5) Participation of a financial institution in this program contributes toward meeting the credit needs of the communities it serves as set forth under chapter 30.60 RCW for state banks, chapter 32.40 RCW for state savings banks, and the federal community reinvestment act of 1977 for federal savings banks, federal savings and loan associations, and national banks.

NEW SECTION. Sec. 6. A new section is added to chapter 38.52 RCW to read as follows:

EMERGENCY MANAGEMENT AND ASSISTANCE FUND. (1) The emergency management and assistance fund is created in the custody of the state treasurer. The account shall consist of amounts deposited into the account as provided in sections 7 and 8 of this act, other funds appropriated or deposited to the account, and income derived from the investment of moneys in the account. Only the director or the director's designee may authorize expenditures from the account. The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.

(2) The purpose of this account is to provide supplemental moneys:

(a) To focus on disaster planning and preparedness, hazard mitigation, and response to and recovery from emergencies and disasters in order to reduce the impact of disasters on the state;

(b) To help to protect lives, property, and the environment from the risk and impact of natural hazards;

(c) To promote the development of a standardized, trained, and adequately staffed and equipped state-wide emergency management and mitigation system for use by all state and local emergency management agencies; and

(d) To provide funds to help local governments and citizens cope with disasters.

(3) The account shall be used for risk-based all hazard planning, mitigation, training, public education and awareness programs, and disaster response, relief, and recovery. These moneys are intended to supplement and not supplant existing state and local fiscal resources dedicated to emergency management. Use of the account is intended to revitalize and improve upon the existing emergency management infrastructure throughout the state to effectively mitigate against the effects and cost of any disaster and to provide more flexibility and resources to address unusual disasters or emergencies. The account shall be used:

(a) To provide that all residents of the state are educated before, during, and after a disaster to protect themselves, their families, and their homes, businesses, and other private or public property;

(b) To encourage that structures, whether public or private, be designed, constructed, retrofitted, or relocated away from flood prone areas, in accordance with the most current safety, land use, and building codes; and

(c) To strengthen state and local government and private sector emergency plans, training, mitigation, and resources for response and recovery from disaster, and to provide additional funds to help local governments and citizens cope with disasters.

NEW SECTION. Sec. 7. A new section is added to chapter 48.14 RCW to read as follows:

EMERGENCY MANAGEMENT AND ASSISTANCE FUND. An annual surcharge of five dollars is imposed on every homeowner's, mobile homeowner's, tenant home renter's, and condominium unit owner's insurance policy, and an annual surcharge of ten dollars is imposed on every commercial fire, commercial multiple peril, and business owner's property insurance policy issued or renewed on or after January 1, 2001. The surcharge shall be imposed on the insured and paid by the insured to the insurer. The insurer issuing or renewing the policy shall collect the surcharge and remit it to the department of revenue, which shall collect, administer, audit, and enforce the surcharge. The surcharge shall not be considered premiums to the insurer. All proceeds of the surcharge shall be deposited in the emergency management and assistance fund created in section 6 of this act.

NEW SECTION. Sec. 8. A new section is added to chapter 38.52 RCW to read as follows:

EMERGENCY MANAGEMENT AND ASSISTANCE FUND. (1) A one-time surcharge of twenty-five dollars is imposed on every loan secured by a one to four unit single-family residence located in this state that is secured by a mortgage or deed of trust made on or after January 1, 2001. The surcharge shall be imposed on the borrower and paid by the borrower to the lender at the time the loan is closed. The lender shall collect the surcharge and remit it to the department of revenue, which shall collect, administer, audit, and enforce the surcharge. The surcharge shall not be considered a fee or other income to the lender. All proceeds of the surcharge shall be deposited in the emergency management and assistance fund created in section 6 of this act.

(2) This section does not apply to an individual who made fewer than ten loans the previous calendar year.

NEW SECTION. Sec. 9. A new section is added to chapter 38.52 RCW to read as follows:

EMERGENCY MANAGEMENT AND ASSISTANCE FUND. (1) Of the annual amount available for disbursement from the emergency management and assistance fund established in section 6 of this act, the director shall provide that:

(a) Thirty percent shall be made available to implement and administer state and local emergency management programs, including training and public awareness, of which twenty-five percent, the state share, shall be used by the department and seventy-five percent, the local share, shall be allocated to local directors;

(b) Twenty-five percent shall be allocated to provide for state relief assistance for nonfederally declared disasters, the state share of federally declared disasters, or up to three-fourths of the local match required to receive federal disaster funds;

(c) Twenty-five percent shall be made available for grants and loans to state or regional agencies or authorities, local governments, and local private nonprofit organizations to implement programs or projects that will further state and local emergency management objectives of which:

(i) Fifty percent shall be dedicated to mitigation projects, and shall be provided in consultation with the department of community, trade, and economic development. These projects shall include mitigation to reduce the risk from the impact of disaster. Projects shall include, but need not be limited to, projects that will promote public education or awareness of disaster mitigation, improving land use planning, particularly identifying critical areas such as steep slopes and landslide areas, developing or revising building codes that incorporate the latest available information on risk reduction from natural hazards;

(ii) At least ten percent shall be provided to the department of community, trade, and economic development to provide technical assistance and education to local governments regarding identifying critical areas such as steep slopes and landslide areas and developing or revising building codes that incorporate the latest available information on risk reduction from natural hazards;

(iii) At least five percent to the department of natural resources to help identify landslide zones; and

(iv) The remaining amount for nonmitigation programs and projects that include, but are not limited to, improving preparedness planning, enhancement, and coordination of relief efforts of state-wide private sector organizations and improving the training and operational capabilities of agencies assigned lead or support responsibilities in emergency management; and

(d)(i) Twenty percent shall be used to provide assistance to low-income persons in a disaster or emergency area in the form of loans and grants. This assistance can only be used for expenses not covered by any other public disaster assistance or private insurance. No grant or loan may exceed twelve thousand five hundred dollars. The director may use some or all of the funds available under this subsection for other emergency or disaster assistance programs or efforts if the director finds that it is in the public's best interest to do so.

(ii) For purposes of this subsection, "low-income person" means a person or family whose adjusted gross income is less than eighty percent of the median family income, adjusted for household size for the county where the disaster occurred.

(2) The department shall, by rule, establish criteria and procedures for the equitable allocation of funds as provided in subsection (1)(a), (b), and (d) of this section, and shall establish criteria and procedures for competitive allocation of funds provided in subsection (1)(c) of this section. Not more than five percent of any award made under this section may be used for administrative expenses. The distribution formula provided in this section may be adjusted proportionally when necessary to meet any matching requirements imposed as a condition of receiving federal disaster relief assistance or planning funds.

(3) Whenever the amounts available under subsection (1)(b) of this section are insufficient to meet the estimated amounts needed to respond to and recover from any nonfederally declared disaster or to provide the state share in any federally declared disaster, the governor, in consultation with the director, shall seek additional funds adequate to meet the needs of such disaster, plus an amount equal to an additional fifteen percent of such funds to be utilized exclusively for mitigation. Within thirty days of the close of each fiscal year, any unexpended balance of funds allocated in accordance with the provisions of subsection (1)(b) of this section for nonfederally declared disasters or the state share of federally declared disasters, shall be made available for supplemental mitigation grants in accordance with subsection (1)(c) of this section.

(4) The department shall collaborate with other state and local agencies in developing rules and administering the funds allocated under this section.

Sec. 10. RCW 43.79A.040 and 1999 c 384 s 8 and 1999 c 182 s 2 are each reenacted and amended to read as follows:

INTEREST EARNINGS. (1) Money in the treasurer's trust fund may be deposited, invested, and reinvested by the state treasurer in accordance with RCW 43.84.080 in the same manner and to the same extent as if the money were in the state treasury.

(2) All income received from investment of the treasurer's trust fund shall be set aside in an account in the treasury trust fund to be known as the investment income account.

(3) The investment income account may be utilized for the payment of purchased banking services on behalf of treasurer's trust funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasurer or affected state agencies. The investment income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for payments to financial institutions. Payments shall occur prior to distribution of earnings set forth in subsection (4) of this section.

(4)(a) Monthly, the state treasurer shall distribute the earnings credited to the investment income account to the state general fund except under (b) and (c) of this subsection.

(b) The following accounts and funds shall receive their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The Washington advanced college tuition payment program account, the agricultural local fund, the American Indian scholarship endowment fund, the Washington international exchange scholarship endowment fund, the developmental disabilities endowment trust fund, the emergency management and assistance fund, the energy account, the fair fund, the game farm alternative account, the grain inspection revolving fund, the juvenile accountability incentive account, the rural rehabilitation account, the stadium and exhibition center account, the youth athletic facility grant account, the self-insurance revolving fund, the sulfur dioxide abatement account, and the children's trust fund. However, the earnings to be distributed shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.

(c) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The advanced right of way revolving fund, the advanced environmental mitigation revolving account, the federal narcotics asset forfeitures account, the high occupancy vehicle account, the local rail service assistance account, and the miscellaneous transportation programs account.

(5) In conformance with Article II, section 37 of the state Constitution, no trust accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

NEW SECTION. Sec. 11. REPORT TO LEGISLATURE. The departments of community, trade, and economic development and natural resources shall report to the legislature by December 1, 2001, on its activities under section 9(1)(c) of this act and shall make recommendations regarding strategies to improve the identification of landslide zones.

NEW SECTION. Sec. 12. Captions used in this act are not any part of the law.

NEW SECTION. Sec. 13. The secretary of state shall submit sections 6 through 10 of this act to the people for their adoption and ratification, or rejection, at the next general election to be held in this state, as required by Initiative Measure No. 695.