Read first time 02/01/2007.   Referred to Committee on Housing.

     AN ACT Relating to discrimination based on lawful source of income; reenacting and amending RCW 49.60.250; adding a new section to chapter 49.60 RCW; and prescribing penalties.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 49.60 RCW to read as follows:
     (1) It is an unfair practice for any person, whether acting for himself, herself, or another, to discriminate in the rental of a dwelling to, or to refuse to negotiate or enter into a rental agreement with, a person because of the person's lawful source of income.
     (2)(a) When a finding has been made under RCW 49.60.250 that the respondent has engaged in an unfair practice under this section, the administrative law judge shall promptly issue an order for appropriate relief for the aggrieved party, which may include actual damages and injunctive or other equitable relief. The order may, to further the public interest, assess a civil penalty against the respondent:
     (i) In an amount up to two thousand five hundred dollars if the respondent is determined not to have committed any prior unfair practices under this section;
     (ii) In an amount up to seven thousand five hundred dollars if the respondent is determined to have committed one other unfair practice under this section during the five-year period ending on the date of the filing of this charge; or
     (iii) In an amount up to ten thousand dollars if the respondent is determined to have committed two or more unfair practices under this section during the seven-year period ending on the date of the filing of this charge.
     (b) Civil penalties assessed under this section shall be paid into the state treasury and credited to the general fund.
     (3) This section does not:
     (a) Apply to rental transactions involving the sharing of a dwelling unit as defined in RCW 59.18.030, or the rental or subleasing of a portion of a dwelling unit, when the dwelling unit is to be occupied by the owner or subleasor;
     (b) Affect the rights, responsibilities, and remedies of landlords and tenants under chapter 59.18 or 59.20 RCW, except to the extent of inconsistencies with the nondiscrimination requirements of this section; or
     (c) Limit the applicability of RCW 49.60.215 relating to unfair practices in places of public accommodation or RCW 49.60.222 through 49.60.227 relating to unfair practices in real estate transactions.
     (4) For the purposes of this section, "lawful source of income" means verifiable legal income, including income derived from employment, social security, supplemental security income, other retirement programs, child support, alimony, and any federal, state, or local government or nonprofit-administered benefit or subsidy program, including rental assistance programs, public assistance, and general assistance programs.

Sec. 2   RCW 49.60.250 and 1993 c 510 s 23 and 1993 c 69 s 14 are each reenacted and amended to read as follows:
     (1) In case of failure to reach an agreement for the elimination of such unfair practice, and upon the entry of findings to that effect, the entire file, including the complaint and any and all findings made, shall be certified to the chairperson of the commission. The chairperson of the commission shall thereupon request the appointment of an administrative law judge under Title 34 RCW to hear the complaint and shall cause to be issued and served in the name of the commission a written notice, together with a copy of the complaint, as the same may have been amended, requiring the respondent to answer the charges of the complaint at a hearing before the administrative law judge, at a time and place to be specified in such notice.
     (2) The place of any such hearing may be the office of the commission or another place designated by it. The case in support of the complaint shall be presented at the hearing by counsel for the commission: PROVIDED, That the complainant may retain independent counsel and submit testimony and be fully heard. No member or employee of the commission who previously made the investigation or caused the notice to be issued shall participate in the hearing except as a witness, nor shall the member or employee participate in the deliberations of the administrative law judge in such case. Any endeavors or negotiations for conciliation shall not be received in evidence.
     (3) The respondent shall file a written answer to the complaint and appear at the hearing in person or otherwise, with or without counsel, and submit testimony and be fully heard. The respondent has the right to cross-examine the complainant.
     (4) The administrative law judge conducting any hearing may permit reasonable amendment to any complaint or answer. Testimony taken at the hearing shall be under oath and recorded.
     (5) If, upon all the evidence, the administrative law judge finds that the respondent has engaged in any unfair practice, the administrative law judge shall state findings of fact and shall issue and file with the commission and cause to be served on such respondent an order requiring such respondent to cease and desist from such unfair practice and to take such affirmative action, including, (but not limited to) hiring, reinstatement or upgrading of employees, with or without back pay, an admission or restoration to full membership rights in any respondent organization, or to take such other action as, in the judgment of the administrative law judge, will effectuate the purposes of this chapter, including action that could be ordered by a court, except that damages for humiliation and mental suffering shall not exceed ten thousand dollars, and including a requirement for report of the matter on compliance. Relief available for violations of RCW 49.60.222 through 49.60.224 shall be limited to the relief specified in RCW 49.60.225. Relief available for violations of section 1 of this act shall be limited to the relief specified in section 1(2) of this act.
     (6) If a determination is made that retaliatory action, as defined in RCW 42.40.050, has been taken against a whistleblower, as defined in RCW 42.40.020, the administrative law judge may, in addition to any other remedy, impose a civil penalty upon the retaliator of up to three thousand dollars and issue an order to the state employer to suspend the retaliator for up to thirty days without pay. At a minimum, the administrative law judge shall require that a letter of reprimand be placed in the retaliator's personnel file. All penalties recovered shall be paid into the state treasury and credited to the general fund.
     (7) The final order of the administrative law judge shall include a notice to the parties of the right to obtain judicial review of the order by appeal in accordance with the provisions of RCW 34.05.510 through 34.05.598, and that such appeal must be served and filed within thirty days after the service of the order on the parties.
     (8) If, upon all the evidence, the administrative law judge finds that the respondent has not engaged in any alleged unfair practice, the administrative law judge shall state findings of fact and shall similarly issue and file an order dismissing the complaint.
     (9) An order dismissing a complaint may include an award of reasonable attorneys' fees in favor of the respondent if the administrative law judge concludes that the complaint was frivolous, unreasonable, or groundless.
     (10) The commission shall establish rules of practice to govern, expedite, and effectuate the foregoing procedure.