AN ACT Relating to legislative oversight of moneys received from enforcement actions; amending RCW 43.10.220; adding a new section to chapter 43.79 RCW; creating a new section; and providing an effective date.

(1) A state agency may not expend moneys except pursuant to an appropriation by law if the moneys are received in an administrative or judicial regulatory or civil enforcement action, or settlement thereof, brought by the state.

(2) In any regulatory or civil enforcement action brought by the attorney general under the authority of the attorney general or another state agency where moneys are to be paid to the state or to a state-administered account, the attorney general shall seek a court order or settlement that includes a requirement that the moneys received by the state may not be expended except pursuant to an appropriation by law.

(a) Moneys received by the state for payment by the state to individually identified injured parties or a specifically identified class of parties as damages, restitution, or refunds. However, if such payments to a class of parties include a payment to a state agency, instead of damages, restitution, or refunds, such as payments under the doctrine of cy pres, the expenditure of the payment by the state agency is subject to this section;

(b) Fees or enforcement actions to collect fees, including investigation or examination fees, that are established by administrative rule or statute;

(c) Expenditures from accounts outside the state treasury, including court registries, exclusively for purposes of remedial action or natural resource damages under chapters 70A.305, 90.48, and 90.56 RCW, 33 U.S.C. Sec. 2701 et seq., or 42 U.S.C. Sec. 9601 et seq., or for purposes of financial assurance under chapter 70A.205 or 70A.300 RCW;

(d) Moneys recovered by the department of social and health services for client services, benefits, or vendor overpayments or moneys collected by the division of child support;

(e) Expenditures from nonappropriated funds and accounts that are specifically established by statute if the statute does not incorporate a reference to this section; or

(f) Moneys specifically awarded by a court to the state or allocated in a settlement of any action as court costs or attorneys' fees incurred by the state in pursuing the action.

((The))Except as provided in section 1 of this act, the attorney general is authorized to expend from the antitrust revolving fund, created by RCW 43.10.210 through 43.10.220, such funds as are necessary for the payment of costs, expenses and charges incurred in the preparation, institution and maintenance of antitrust actions under the state and federal antitrust acts. ((During the 2015-2017 fiscal biennium, the attorney general may expend from the antitrust revolving fund for the purposes of the consumer protection activities of the office.))

NEW SECTION. Sec. 3. If any part of this act is found to be in conflict with federal requirements that are a prescribed condition to the allocation of federal funds to the state, the conflicting part of this act is inoperative solely to the extent of the conflict and with respect to the agencies directly affected, and this finding does not affect the operation of the remainder of this act in its application to the agencies concerned. Rules adopted under this act must meet federal requirements that are a necessary condition to the receipt of federal funds by the state.

NEW SECTION. Sec. 4. 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.