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ONE-HUNDREDTH DAY
__________
MORNING SESSION
__________
House Chamber, Olympia, Tuesday, April 18, 1995
The House was called to order at 9:00 a.m. by the Speaker (Representative Horn presiding). The Clerk called the roll and a quorum was present.
The flag was escorted to the rostrum by a Sergeant at Arms Color Guard, Pages Tara Johnson and Jessamyn Tichy. Prayer was offered by Pastor Ed Evans of the United Church of Christ of Blaine.
Reading of the Journal of the previous day was dispensed with and it was ordered to stand approved.
RESOLUTION
HOUSE RESOLUTION NO. 95-4678, by Representatives Basich, Kessler, Buck and Hatfield
WHEREAS, The Wishkah Valley Loggerettes finished 29-0 and are the 1995 State Girls Class B Basketball Champions; and
WHEREAS, The Loggerettes won the championship at the state playoffs in Spokane; and
WHEREAS, This marks the third season in a row that Wishkah Valley has reigned as Pacific League Champions and District IV Champions; and
WHEREAS, The Loggerettes, worked together with exceptional teamwork in practice and games to produce a winning team from one of the smallest high schools in the state; and
WHEREAS, The Loggerettes, Sissel Pierce, Crystal Teague, Mindy McElliott, Abbie Pierce, Amanda Matthews, Kim Witt, Ronda Moodenbaugh, Melissa Bowen, Amber Matthews, Carissa Johnson, and Debbie Gerchak, have an outstanding three-year record of 82 wins and 5 losses; and
WHEREAS, Coach Rick McDougall and his assistant Dave Busz have shown exceptional leadership and strategy to lead the team to victory; and
WHEREAS, Team managers Nicole Eager and Steve Ashler have contributed greatly to the undefeated season; and
WHEREAS, This proud accomplishment would not have been possible without the support and encouragement of all the students and staff of Wishkah Valley High School including Principal Dale Bowen and Superintendent Jim Miller, the parents, families, and members of the community;
NOW, THEREFORE, BE IT RESOLVED, That the Washington State House of Representatives recognize and honor the young women of the Wishkah Loggerettes Basketball Team for this hard-earned championship and for its contribution to the spirit of the entire student body and the community; and
BE IT FURTHER RESOLVED, That copies of this resolution be immediately transmitted by the Chief Clerk of the House of Representatives to the Captain of the Wishkah Valley Loggerettes Basketball team, the Head Coach, the Student Body President, and the School Principal.
Representative Basich moved adoption of the resolution.
Representatives Basich and Kessler spoke in favor of adoption of the resolution.
House Resolution No. 4678 was adopted.
MESSAGES FROM THE SENATE
April 17, 1995
Mr. Speaker:
The Senate has concurred in the House amendments and passed the bills as amended by the House:
ENGROSSED SENATE BILL NO. 5019,
SECOND SUBSTITUTE SENATE BILL NO. 5088,
SUBSTITUTE SENATE BILL NO. 5182,
SUBSTITUTE SENATE BILL NO. 5183,
ENGROSSED SUBSTITUTE SENATE BILL NO. 5190,
SUBSTITUTE SENATE BILL NO. 5209,
ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5342,
SUBSTITUTE SENATE BILL NO. 5402,
SUBSTITUTE SENATE BILL NO. 5403,
and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
April 14, 1995
Mr. Speaker:
The Senate has passed:
ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 6062,
and the same is herewith transmitted.
Marty Brown, Secretary
April 14, 1995
Mr. Speaker:
The Senate has passed:
SUBSTITUTE HOUSE BILL NO. 1677,
and the same is herewith transmitted.
Marty Brown, Secretary
There being no objection, the House advanced to the seventh order of business.
SENATE AMENDMENTS TO HOUSE BILL
April 11, 1995
Mr. Speaker:
The Senate has passed ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1009 with the following amendments:
Strike everything after the enacting clause and insert the following:
"NEW SECTION. Sec. 1. A new section is added to chapter 15.92 RCW to read as follows:
(1) A commission on pesticide registration is established. The commission shall be composed of twelve voting members appointed by the governor as follows:
(a) Eight members from the following segments of the state's agricultural industry as nominated by a state-wide private agricultural association or agricultural commodity commission formed under Title 15 RCW: (i) The tree fruit industry; (ii) hop growers; (iii) potato growers; (iv) wheat growers; (v) vegetable and seed growers; (vi) berry growers; (vii) wine grape growers; and (viii) the nursery and landscape industry. Although members are appointed from various segments of the agriculture industry, they are appointed to represent and advance the interests of the industry as a whole.
(b) One member from each of the following: (i) Forest protection industry; (ii) food processors; (iii) agricultural chemical industry; and (iv) professional pesticide applicators. One member shall be appointed for each such segment of the industry and shall be nominated by a state-wide, private association of that segment of the industry. The representative of the agricultural chemical industry shall be involved in the manufacture of agricultural crop protection products.
The following shall be ex officio, nonvoting members of the commission: The coordinator of the interregional project number four at Washington State University; the director of the department of ecology or the director's designee; the director of the department of agriculture or the director's designee; the director of the department of labor and industries or the director's designee, and the secretary of the department of health or the secretary's designee.
(2) Each voting member of the commission shall serve a term of three years. However, the first appointments in the first year shall be made by the governor for one, two, and three-year terms so that, in subsequent years, approximately one-third of the voting members shall be appointed each year. The governor shall assign the initial one, two, and three-year terms to members by lot. A vacancy shall be filled by appointment for the unexpired term in the same manner provided for an appointment to the full term. No member of the commission may be removed by the governor during his or her term of office unless for cause of incapacity, incompetence, neglect of duty, or malfeasance in office. Each member of the commission shall receive travel expenses in accordance with RCW 43.03.050 and 43.03.060 for attending meetings of the commission and for performing special duties, in the way of official commission business, specifically assigned to the person by the commission. The voting members of the commission serve without compensation from the state other than such travel expenses.
(3) Nominations for the initial appointments to the commission under subsection (1) of this section shall be submitted by September 1, 1995. The governor shall make initial appointments to the commission by October 15, 1995.
(4) The commission shall elect a chair from among its voting members each calendar year. After its original organizational meeting, the commission shall meet at the call of the chair. A majority of the voting members of the commission constitutes a quorum and an official action of the commission may be taken by a majority vote of the voting members.
NEW SECTION. Sec. 2. A new section is added to chapter 15.92 RCW to read as follows:
(1) The following apply to the use of state moneys appropriated to Washington State University specifically and expressly for studies or activities regarding the registration of pesticides:
(a) The moneys may not be expended without the express approval of the commission on pesticide registration;
(b) The moneys may be used for: (i) Evaluations, studies, or investigations approved by the commission on pesticide registration regarding the registration or reregistration of pesticides for minor crops or minor uses or regarding the availability of pesticides for emergency uses. These evaluations, studies, or investigations may be conducted by the food and environmental quality laboratory or may be secured by the commission from other qualified laboratories, researchers, or contractors by contract, which contracts may include, but are not limited to, those purchasing the use of proprietary information; (ii) the tracking system described in RCW 15.92.060; and (iii) the support of the commission on pesticide registration and its activities; and
(c) Not less than twenty-five percent of such moneys shall be dedicated to studies or investigations concerning the registration or use of pesticides for crops that are not among the top twenty agricultural commodities in production value produced in the state, as determined annually by the Washington agricultural statistics service.
(2) The commission on pesticide registration shall establish priorities to guide it in approving the use of moneys for evaluations, studies, and investigations under this section. Each biennium, the commission shall prepare a contingency plan for providing funding for laboratory studies or investigations that are necessary to pesticide registrations or related processes that will address emergency conditions for agricultural crops that are not generally predicted at the beginning of the biennium.
NEW SECTION. Sec. 3. A new section is added to chapter 15.92 RCW to read as follows:
The commission on pesticide registration shall:
(1) Provide guidance to the food and environmental quality laboratory established in RCW 15.92.050 regarding the laboratory's studies, investigations, and evaluations concerning the registration of pesticides for use in this state for minor crops and minor uses and concerning the availability of pesticides for emergency uses;
(2) Encourage agricultural organizations to assist in providing funding, in-kind services, or materials for laboratory studies and investigations concerning the registration of pesticides for minor crops and minor uses that would benefit the organizations;
(3) Provide guidance to the laboratory regarding a program for: Tracking the availability of effective pesticides for minor crops, minor uses, and emergency uses; providing this information to organizations of agricultural producers; and maintaining close contact between the laboratory, the department of agriculture, and organizations of agricultural producers regarding the need for research to support the registration of pesticides for minor crops and minor uses and the availability of pesticides for emergency uses;
(4) Ensure that the activities of the commission and the laboratory are coordinated with the activities of other laboratories in the Pacific Northwest, the United States department of agriculture, and the United States environmental protection agency to maximize the effectiveness of regional efforts to assist in the registration of pesticides for minor crops and minor uses and in providing for the availability of pesticides for emergency uses for the region and the state; and
(5) Ensure that prior to approving any residue study that there is written confirmation of registrant support and willingness or ability to add the given minor crop to its label including any restrictions or guidelines the registrant intends to impose.
Sec. 4. RCW 15.92.010 and 1991 c 341 s 2 are each amended to read as follows:
Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
(1) "Agricultural commodity" means any distinctive type of agricultural, horticultural, viticultural, floricultural, vegetable, or animal product, including but not limited to, products qualifying as organic food products under chapter 15.86 RCW, private sector cultured aquatic products as defined in RCW 15.85.020, bees and honey, and Christmas trees but not including timber or timber products.
(2) "Center" means the center for sustaining agriculture and natural resources established at Washington State University.
(((2))) (3) "Laboratory" means the food and environmental quality laboratory established at Washington State University at Tri-Cities.
(((3))) (4) "Integrated pest management" is a strategy that uses various combinations of pest control methods, biological, cultural, and chemical, in a compatible manner to achieve satisfactory control and ensure favorable economic and environmental consequences.
(((4))) (5) "IR-4 program" means interregional research project number four, clearances of chemicals and biologics for minor or special uses, established in 1963 by the cooperative state research service of the United States department of agriculture, the coordinated national program involving land-grant universities and the United States department of agriculture to provide data required for the registration of pesticides needed for the production of minor crops.
(((5))) (6) "Minor crop" means an agricultural crop considered to be minor in the national context of registering pesticides.
(7) "Minor use" means a pesticide use considered to be minor in the national context of registering pesticides including, but not limited to, a use for a special local need.
(8) "Natural resources" means soil, water, air, forests, wetlands, wildlands, and wildlife.
(((6))) (9) "Pesticide" means chemical or biologic used to control pests such as insect, rodent, nematode, snail, slug, weed, virus, or any organism the director of agriculture may declare to be a pest.
(((7))) (10) "Registration" means use of a pesticide approved by the state department of agriculture.
(((8))) (11) "Sustainable agriculture" means a systems approach to farming, ranching, and natural resource production that builds on and supports the physical, biological, and ecological resource base upon which agriculture depends. The goals of sustainable agriculture are to provide human food and fiber needs in an economically viable manner for the agriculture industry and in a manner which protects the environment and contributes to the overall safety and quality of life.
Sec. 5. RCW 15.92.060 and 1991 c 341 s 7 are each amended to read as follows:
The responsibilities of the laboratory shall include:
(1) Evaluating regional requirements for minor crop registration through the federal IR-4 program;
(2) Providing a program for tracking the availability of effective pesticides for minor crops, minor uses, and emergency uses in this state;
(3) Conducting studies on the fate of pesticides on crops and in the environment, including soil, air, and water;
(((3))) (4) Improving pesticide information and education programs; ((and
(4))) (5) Assisting federal and state agencies with questions regarding registration of pesticides which are deemed critical to crop production, consistent with priorities established in RCW 15.92.070; and
(((5))) (6) Assisting in the registration of biopesticides, pheromones, and other alternative chemical and biological methods.
NEW SECTION. Sec. 6. A new section is added to chapter 15.92 RCW to read as follows:
By December 15, 2002, the commission shall file with the legislature a report on the activities supported by the commission for the period beginning on the effective date of this act and ending on December 1, 2002. The report shall include an identification of: The priorities that have been set by the commission; the state appropriations made to Washington State University that have been within the jurisdiction of the commission; the evaluations, studies, and investigations funded in whole or in part by such moneys and the registrations and uses of pesticides made possible in large part by those evaluations, studies, and investigations; the matching moneys, in-kind services, and materials provided by agricultural organizations for those evaluations, studies, and investigations; and the program or programs for tracking pesticide availability provided by the laboratory under the guidance of the commission and the means used for providing this information to organizations of agricultural producers.
During the regular session of the legislature in the year 2003, the appropriate committees of the house of representatives and senate shall evaluate the effectiveness of the commission in fulfilling its statutory responsibilities.
NEW SECTION. Sec. 7. A new section is added to chapter 15.92 RCW to read as follows:
The commission on pesticide registration, and Washington State University on behalf of the commission, may receive such gifts, grants, and endowments from public or private sources as may be used from time to time, in trust or otherwise, for the use and benefit of the commission and expend the same or any income therefrom according to the terms of the gifts, grants, or endowments."
On page 1, line 1 of the title, after "registration;" strike the remainder of the title and insert "amending RCW 15.92.010 and 15.92.060; and adding new sections to chapter 15.92 RCW."
and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
MOTION
Representative Chandler moved that the House concur in the Senate amendments to Engrossed Second Substitute House Bill No. 1009 and pass the bill as amended by the Senate.
Representative Chandler spoke in favor of the motion and it was carried.
MOTIONS
On motion of Representative Talcott, Representatives Dyer and Foreman were excused.
On motion of Representative Brown, Representatives Morris, Patterson and G. Fisher were excused.
FINAL PASSAGE OF HOUSE BILL AS SENATE AMENDED
The Speaker (Representative Horn presiding) stated the question before the House to be final passage of Engrossed Second Substitute House Bill No. 1009 as amended by the Senate.
Representatives Rust and Chandler spoke in favor of passage of the bill.
ROLL CALL
The Clerk called the roll on the final passage of Engrossed Second Substitute House Bill No. 1009 as amended by the Senate, and the bill passed the House by the following vote: Yeas - 89, Nays - 0, Absent - 2, Excused - 7.
Voting yea: Representatives Appelwick, Backlund, Ballasiotes, Basich, Beeksma, Benton, Blanton, Boldt, Brown, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chappell, Chopp, Clements, Cody, Cole, Conway, Cooke, Costa, Crouse, Dellwo, Delvin, Dickerson, Ebersole, Elliot, Fisher, R., Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Jacobsen, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mason, Mastin, McMahan, McMorris, Mielke, Mitchell, Mulliken, Ogden, Pelesky, Pennington, Quall, Radcliff, Reams, Regala, Romero, Rust, Schmidt, D., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Sommers, Sterk, Stevens, Talcott, Thibaudeau, Thomas, B., Thomas, L., Thompson, Valle, Van Luven, Veloria, Wolfe and Mr. Speaker - 89.
Absent: Representatives Poulsen and Tokuda - 2.
Excused: Representatives Dyer, Fisher, G., Foreman, Morris, Patterson, Robertson and Schmidt, K. - 7.
Engrossed Second Substitute House Bill No. 1009, as amended by the Senate, having received the constitutional majority, was declared passed.
SENATE AMENDMENTS TO HOUSE BILL
April 6, 1995
Mr. Speaker:
The Senate has passed SUBSTITUTE HOUSE BILL NO. 1035 with the following amendment:
Strike everything after the enacting clause and insert the following:
"NEW SECTION. Sec. 1. (1) The department of health, in conjunction with the department of social and health services, local health jurisdictions, coroners, medical examiners, and other appropriate entities, shall develop a consistent process for review of all unexpected deaths of minors who are in the care of or receiving those services described in chapter 74.13 RCW from the department of social and health services. For purposes of this section an "unexpected death of a minor" is a death not resulting from a diagnosed terminal illness or other debilitating or deteriorating illness or condition where death is anticipated.
(2) The department of health shall report its findings and recommendations to the legislature by November 1, 1995."
On page 1, line 3 of the title, after "services;" strike the remainder of the title and insert "and creating a new section."
and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
MOTION
Representative Cooke moved that the House concur in the Senate amendments to Substitute House Bill No. 1035 and pass the bill as amended by the Senate.
Representative Thibaudeau spoke in favor of the motion and it was carried.
FINAL PASSAGE OF HOUSE BILL AS SENATE AMENDED
The Speaker (Representative Horn presiding) stated the question before the House to be final passage of Substitute House Bill No. 1035 as amended by the Senate.
Representative Cooke spoke in favor of passage of the bill.
ROLL CALL
The Clerk called the roll on the final passage of Substitute House Bill No. 1035 as amended by the Senate, and the bill passed the House by the following vote: Yeas - 89, Nays - 0, Absent - 2, Excused - 7.
Voting yea: Representatives Appelwick, Backlund, Ballasiotes, Basich, Beeksma, Benton, Blanton, Boldt, Brown, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chappell, Chopp, Clements, Cody, Cole, Conway, Cooke, Costa, Crouse, Dellwo, Delvin, Dickerson, Ebersole, Elliot, Fisher, R., Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Jacobsen, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mason, Mastin, McMahan, McMorris, Mielke, Mitchell, Mulliken, Ogden, Pelesky, Pennington, Quall, Radcliff, Reams, Regala, Romero, Rust, Schmidt, D., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Sommers, Sterk, Stevens, Talcott, Thibaudeau, Thomas, B., Thomas, L., Thompson, Valle, Van Luven, Veloria, Wolfe and Mr. Speaker - 89.
Absent: Representatives Poulsen and Tokuda - 2.
Excused: Representatives Dyer, Fisher, G., Foreman, Morris, Patterson, Robertson and Schmidt, K. - 7.
Substitute House Bill No. 1035, as amended by the Senate, having received the constitutional majority, was declared passed.
SENATE AMENDMENTS TO HOUSE BILL
April 7, 1995
Mr. Speaker:
The Senate has passed SUBSTITUTE HOUSE BILL NO. 1047 with the following amendments:
Strike everything after the enacting clause and insert the following:
"Sec. 1. RCW 9.94A.140 and 1994 c 271 s 601 are each amended to read as follows:
(1) If restitution is ordered, the court shall determine the amount of restitution due at the sentencing hearing or within ((sixty)) one hundred eighty days. The court may continue the hearing beyond the one hundred eighty days for good cause. The court shall then set a minimum monthly payment that the offender is required to make towards the restitution that is ordered. The court should take into consideration the total amount of the restitution owed, the offender's present, past, and future ability to pay, as well as any assets that the offender may have. During the period of supervision, the community corrections officer may examine the offender to determine if there has been a change in circumstances that warrants an amendment of the monthly payment schedule. The community corrections officer may recommend a change to the schedule of payment and shall inform the court of the recommended change and the reasons for the change. The sentencing court may then reset the monthly minimum payments based on the report from the community corrections officer of the change in circumstances. Restitution ordered by a court pursuant to a criminal conviction shall be based on easily ascertainable damages for injury to or loss of property, actual expenses incurred for treatment for injury to persons, and lost wages resulting from injury. Restitution shall not include reimbursement for damages for mental anguish, pain and suffering, or other intangible losses, but may include the costs of counseling reasonably related to the offense. The amount of restitution shall not exceed double the amount of the offender's gain or the victim's loss from the commission of the crime. For the purposes of this section, the offender shall remain under the court's jurisdiction for a maximum term of ten years following the offender's release from total confinement or ten years subsequent to the entry of the judgment and sentence, whichever period is longer. The portion of the sentence concerning restitution may be modified as to amount, terms and conditions during the ten-year period, regardless of the expiration of the offender's term of community supervision and regardless of the statutory maximum for the crime. The court may not reduce the total amount of restitution ordered because the offender may lack the ability to pay the total amount. The offender's compliance with the restitution shall be supervised by the department.
(2) Restitution may be ordered whenever the offender is convicted of an offense which results in injury to any person or damage to or loss of property. In addition, restitution may be ordered to pay for an injury, loss, or damage if the offender pleads guilty to a lesser offense or fewer offenses and agrees with the prosecutor's recommendation that the offender be required to pay restitution to a victim of an offense or offenses which are not prosecuted pursuant to a plea agreement.
(3) In addition to any sentence that may be imposed, a defendant who has been found guilty of an offense involving fraud or other deceptive practice or an organization which has been found guilty of any such offense may be ordered by the sentencing court to give notice of the conviction to the class of persons or to the sector of the public affected by the conviction or financially interested in the subject matter of the offense by mail, by advertising in designated areas or through designated media, or by other appropriate means.
(4) This section does not limit civil remedies or defenses available to the victim or defendant. The court shall identify in the judgment and sentence the victim or victims entitled to restitution and what amount is due each victim. The state or victim may enforce the court-ordered restitution in the same manner as a judgment in a civil action. Restitution collected through civil enforcement must be paid through the registry of the court and must be distributed proportionately according to each victim's loss when there is more than one victim.
Sec. 2. RCW 9.94A.142 and 1994 c 271 s 602 are each amended to read as follows:
(1) When restitution is ordered, the court shall determine the amount of restitution due at the sentencing hearing or within ((sixty)) one hundred eighty days. The court may continue the hearing beyond the one hundred eighty days for good cause. The court shall then set a minimum monthly payment that the offender is required to make towards the restitution that is ordered. The court should take into consideration the total amount of the restitution owed, the offender's present, past, and future ability to pay, as well as any assets that the offender may have. During the period of supervision, the community corrections officer may examine the offender to determine if there has been a change in circumstances that warrants an amendment of the monthly payment schedule. The community corrections officer may recommend a change to the schedule of payment and shall inform the court of the recommended change and the reasons for the change. The sentencing court may then reset the monthly minimum payments based on the report from the community corrections officer of the change in circumstances. Restitution ordered by a court pursuant to a criminal conviction shall be based on easily ascertainable damages for injury to or loss of property, actual expenses incurred for treatment for injury to persons, and lost wages resulting from injury. Restitution shall not include reimbursement for damages for mental anguish, pain and suffering, or other intangible losses, but may include the costs of counseling reasonably related to the offense. The amount of restitution shall not exceed double the amount of the offender's gain or the victim's loss from the commission of the crime. For the purposes of this section, the offender shall remain under the court's jurisdiction for a maximum term of ten years following the offender's release from total confinement or ten years subsequent to the entry of the judgment and sentence, whichever period is longer. The portion of the sentence concerning restitution may be modified as to amount, terms and conditions during the ten-year period, regardless of the expiration of the offender's term of community supervision and regardless of the statutory maximum for the crime. The court may not reduce the total amount of restitution ordered because the offender may lack the ability to pay the total amount. The offender's compliance with the restitution shall be supervised by the department.
(2) Restitution shall be ordered whenever the offender is convicted of an offense which results in injury to any person or damage to or loss of property unless extraordinary circumstances exist which make restitution inappropriate in the court's judgment and the court sets forth such circumstances in the record. In addition, restitution shall be ordered to pay for an injury, loss, or damage if the offender pleads guilty to a lesser offense or fewer offenses and agrees with the prosecutor's recommendation that the offender be required to pay restitution to a victim of an offense or offenses which are not prosecuted pursuant to a plea agreement.
(3) In addition to any sentence that may be imposed, a defendant who has been found guilty of an offense involving fraud or other deceptive practice or an organization which has been found guilty of any such offense may be ordered by the sentencing court to give notice of the conviction to the class of persons or to the sector of the public affected by the conviction or financially interested in the subject matter of the offense by mail, by advertising in designated areas or through designated media, or by other appropriate means.
(4) This section does not limit civil remedies or defenses available to the victim, survivors of the victim, or defendant. The court shall identify in the judgment and sentence the victim or victims entitled to restitution and what amount is due each victim. The state or victim may enforce the court-ordered restitution in the same manner as a judgment in a civil action. Restitution collected through civil enforcement must be paid through the registry of the court and must be distributed proportionately according to each victim's loss when there is more than one victim.
(5) This section shall apply to offenses committed after July 1, 1985.
Sec. 3. RCW 9.94A.145 and 1991 c 93 s 2 are each amended to read as follows:
(1) Whenever a person is convicted of a felony, the court may order the payment of a legal financial obligation as part of the sentence. The court must on either the judgment and sentence or on a subsequent order to pay, designate the total amount of a legal financial obligation and segregate this amount among the separate assessments made for restitution, costs, fines, and other assessments required by law. On the same order, the court is also to set a sum that the offender is required to pay on a monthly basis towards satisfying the legal financial obligation. If the court fails to set the offender monthly payment amount, the department shall set the amount. Upon receipt of an offender's monthly payment, after restitution is satisfied, the county clerk shall distribute the payment proportionally among all other fines, costs, and assessments imposed, unless otherwise ordered by the court.
(2) If the court determines that the offender, at the time of sentencing, has the means to pay for the cost of incarceration, the court may require the offender to pay for the cost of incarceration at a rate of fifty dollars per day of incarceration. Payment of other court-ordered financial obligations, including all legal financial obligations and costs of supervision shall take precedence over the payment of the cost of incarceration ordered by the court. All funds recovered from offenders for the cost of incarceration in the county jail shall be remitted to the county and the costs of incarceration in a prison shall be remitted to the department of corrections.
(3) The court may add to the judgment and sentence or subsequent order to pay a statement that a notice of payroll deduction is to be immediately issued. If the court chooses not to order the immediate issuance of a notice of payroll deduction at sentencing, the court shall add to the judgment and sentence or subsequent order to pay a statement that a notice of payroll deduction may be issued or other income-withholding action may be taken, without further notice to the offender if a monthly court-ordered legal financial obligation payment is not paid when due, and an amount equal to or greater than the amount payable for one month is owed.
If a judgment and sentence or subsequent order to pay does not include the statement that a notice of payroll deduction may be issued or other income-withholding action may be taken if a monthly legal financial obligation payment is past due, the department may serve a notice on the offender stating such requirements and authorizations. Service shall be by personal service or any form of mail requiring a return receipt.
(4) All legal financial obligations that are ordered as a result of a conviction for a felony, may also be enforced in the same manner as a judgment in a civil action by the party or entity to whom the legal financial obligation is owed. Restitution collected through civil enforcement must be paid through the registry of the court and must be distributed proportionately according to each victim's loss when there is more than one victim. The judgment and sentence shall identify the party or entity to whom restitution is owed so that the state, party, or entity may enforce the judgment. These obligations may be enforced at any time during the ten-year period following the offender's release from total confinement or within ten years of entry of the judgment and sentence, whichever period is longer. Independent of the department, the party or entity to whom the legal financial obligation is owed shall have the authority to utilize any other remedies available to the party or entity to collect the legal financial obligation.
(5) In order to assist the court in setting a monthly sum that the offender must pay during the period of supervision, the offender is required to report to the department for purposes of preparing a recommendation to the court. When reporting, the offender is required, under oath, to truthfully and honestly respond to all questions concerning present, past, and future earning capabilities and the location and nature of all property or financial assets. The offender is further required to bring any and all documents as requested by the department.
(6) After completing the investigation, the department shall make a report to the court on the amount of the monthly payment that the offender should be required to make towards a satisfied legal financial obligation.
(7) During the period of supervision, the department may make a recommendation to the court that the offender's monthly payment schedule be modified so as to reflect a change in financial circumstances. If the department sets the monthly payment amount, the department may modify the monthly payment amount without the matter being returned to the court. Also, during the period of supervision, the offender may be required at the request of the department to report to the department for the purposes of reviewing the appropriateness of the collection schedule for the legal financial obligation. During this reporting, the offender is required under oath to truthfully and honestly respond to all questions concerning earning capabilities and the location and nature of all property or financial assets. Also, the offender is required to bring any and all documents as requested by the department in order to prepare the collection schedule.
(8) After the judgment and sentence or payment order is entered, the department shall for any period of supervision be authorized to collect the legal financial obligation from the offender. Any amount collected by the department shall be remitted daily to the county clerk for the purposes of disbursements. The department is authorized to accept credit cards as payment for a legal financial obligation, and any costs incurred related to accepting credit card payments shall be the responsibility of the offender.
(9) The department or any obligee of the legal financial obligation may seek a mandatory wage assignment for the purposes of obtaining satisfaction for the legal financial obligation pursuant to RCW 9.94A.2001.
(10) The requirement that the offender pay a monthly sum towards a legal financial obligation constitutes a condition or requirement of a sentence and the offender is subject to the penalties as provided in RCW 9.94A.200 for noncompliance.
(11) The county clerk shall provide the department with individualized monthly billings for each offender with an unsatisfied legal financial obligation and shall provide the department with notice of payments by such offenders no less frequently than weekly.
Sec. 4. RCW 6.17.020 and 1994 c 189 s 1 are each amended to read as follows:
(1) Except as provided in subsections (2) ((and)), (3), and (4) of this section, the party in whose favor a judgment of a court of record of this state or a district court of this state has been or may be rendered, or the assignee, may have an execution issued for the collection or enforcement of the judgment at any time within ten years from entry of the judgment.
(2) After July 23, 1989, a party who obtains a judgment or order of a court of record of any state, or an administrative order entered as defined in RCW 74.20A.020(6) for accrued child support, may have an execution issued upon that judgment or order at any time within ten years of the eighteenth birthday of the youngest child named in the order for whom support is ordered.
(3) After June 9, 1994, a party in whose favor a judgment has been rendered pursuant to subsection (1) or (4) of this section may, within ninety days before the expiration of the original ten-year period, apply to the court that rendered the judgment for an order granting an additional ten years during which an execution may be issued. The petitioner shall pay to the court a filing fee equal to the filing fee for filing the first or initial paper in a civil action in the court. When application is made to the court to grant an additional ten years, the application shall be accompanied by a current and updated judgment summary as outlined in RCW 4.64.030. The filing fee required under this subsection shall be included in the judgment summary and shall be a recoverable cost.
(4) A party who obtains a judgment or order for restitution or other court-ordered legal financial obligations pursuant to a criminal judgment and sentence may execute the judgment or order any time within ten years subsequent to the entry of the judgment and sentence or ten years following the offender's release from total confinement as provided in chapter 9.94A RCW.
NEW SECTION. Sec. 5. Sections 1 and 2 of this act shall apply retroactively to allow courts to set restitution in cases sentenced prior to the effective date of this act if:
(1) The court failed to set restitution within sixty days of sentencing as required by RCW 9.94A.140 prior to the effective date of this act;
(2) The defendant was sentenced no more than three hundred sixty-five days before the effective date of this act; and
(3) The defendant is not unfairly prejudiced by the delay.
In those cases, the court may set restitution within one hundred eighty days of the effective date of this act or at a later hearing set by the court for good cause."
On page 1, line 1 of the title, after "restitution;" strike the remainder of the title and insert "amending RCW 9.94A.140, 9.94A.142, 9.94A.145, and 6.17.020; and creating a new section."
and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
MOTION
Representative Sheahan moved that the House concur in the Senate amendments to Substitute House Bill No. 1047 and pass the bill as amended by the Senate. The motion was carried.
FINAL PASSAGE OF HOUSE BILL AS SENATE AMENDED
The Speaker (Representative Horn presiding) stated the question before the House to be final passage of Substitute House Bill No. 1047 as amended by the Senate.
Representatives Sheahan and Costa spoke in favor of passage of the bill.
ROLL CALL
The Clerk called the roll on the final passage of Substitute House Bill No. 1047 as amended by the Senate, and the bill passed the House by the following vote: Yeas - 91, Nays - 0, Absent - 0, Excused - 7.
Voting yea: Representatives Appelwick, Backlund, Ballasiotes, Basich, Beeksma, Benton, Blanton, Boldt, Brown, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chappell, Chopp, Clements, Cody, Cole, Conway, Cooke, Costa, Crouse, Dellwo, Delvin, Dickerson, Ebersole, Elliot, Fisher, R., Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Jacobsen, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mason, Mastin, McMahan, McMorris, Mielke, Mitchell, Mulliken, Ogden, Pelesky, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Romero, Rust, Schmidt, D., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Sommers, Sterk, Stevens, Talcott, Thibaudeau, Thomas, B., Thomas, L., Thompson, Tokuda, Valle, Van Luven, Veloria, Wolfe and Mr. Speaker - 91.
Excused: Representatives Dyer, Fisher, G., Foreman, Morris, Patterson, Robertson and Schmidt, K. - 7.
Substitute House Bill No. 1047, as amended by the Senate, having received the constitutional majority, was declared passed.
SENATE AMENDMENTS TO HOUSE BILL
April 4, 1995
Mr. Speaker:
The Senate has passed SUBSTITUTE HOUSE BILL NO. 1053, with the following amendments:
On page 4, after line 2, insert the following:
"Sec. 3. RCW 70.94.457 and 1991 c 199 s 501 are each amended to read as follows:
The department of ecology shall establish by rule under chapter 34.05 RCW:
(1) State-wide emission performance standards for new solid fuel burning devices. Notwithstanding any other provision of this chapter which allows an authority to adopt more stringent emission standards, no authority shall adopt any emission standard for new solid fuel burning devices other than the state-wide standard adopted by the department under this section.
(a) After January 1, 1995, no solid fuel burning device shall be offered for sale in this state to residents of this state that does not meet the following particulate air contaminant emission standards under the test methodology of the United States environmental protection agency in effect on January 1, 1991, or an equivalent standard under any test methodology adopted by the United States environmental protection agency subsequent to such date: (i) Two and one-half grams per hour for catalytic wood stoves; and (ii) four and one-half grams per hour for all other solid fuel burning devices. For purposes of this subsection, "equivalent" shall mean the emissions limits specified in this subsection multiplied by a statistically reliable conversion factor determined by the department that compares the difference between the emission test methodology established by the United States environmental protection agency prior to May 15, 1991, with the test methodology adopted subsequently by the agency. Subsection (a) of this subsection does not apply to fireplaces.
(b) After January 1, 1997, no fireplace, except masonry fireplaces, shall be offered for sale unless such fireplace meets the 1990 United States environmental protection agency standards for wood stoves or equivalent standard that may be established by the state building code council by rule. Prior to January 1, 1997, the state building code council shall establish by rule a methodology for the testing of factory-built fireplaces. The methodology shall be designed to achieve a particulate air emission standard equivalent to the 1990 United States environmental protection agency standard for wood stoves. In developing the rules, the council shall include on the technical advisory committee at least one representative from the masonry fireplace builders and at least one representative of the factory-built fireplace manufacturers.
(c) Prior to January 1, 1997, the state building code council shall establish by rule design standards for the construction of new masonry fireplaces in Washington state. In developing the rules, the council shall include on the technical advisory committee at least one representative from the masonry fireplace builders and at least one representative of the factory-built fireplace manufacturers. It shall be the goal of the council to develop design standards that generally achieve reductions in particulate air contaminant emissions commensurate with the reductions being achieved by factory-built fireplaces at the time the standard is established.
(d) Actions of the department and local air pollution control authorities under this section shall preempt actions of other state agencies and local governments for the purposes of controlling air pollution from solid fuel burning devices, except where authorized by this act.
(e) Subsection (1)(a) of this section shall not apply to fireplaces.
(f) Notwithstanding (a) of this subsection, the department is authorized to adopt, by rule, emission standards adopted by the United States environmental protection agency for new wood stoves sold at retail. For solid fuel burning devices for which the United States environmental protection agency has not established emission standards, the department may exempt or establish, by rule, state-wide standards including emission levels and test procedures for such devices and such emission levels and test procedures shall be equivalent to emission levels per pound per hour burned for other new wood stoves and fireplaces regulated under this subsection.
(2) A program to:
(a) Determine whether a new solid fuel burning device complies with the state-wide emission performance standards established in subsection (1) of this section; and
(b) Approve the sale of devices that comply with the state-wide emission performance standards.
Sec. 4. RCW 70.94.460 and 1987 c 405 s 7 are each amended to read as follows:
After July 1, 1988, no person shall sell, offer to sell, or knowingly advertise to sell a new wood stove in this state to a resident of this state unless the wood stove has been approved by the department under the program established under RCW 70.94.457."
On page 1, beginning on line 1 of the title, after "RCW" strike the remainder of the title and insert "70.94.473, 70.94.477, 70.94.457, and 70.94.460."
and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
MOTION
Representative Chandler moved that the House concur in the Senate amendments to Substitute House Bill No. 1053 and pass the bill as amended by the Senate. The motion was carried.
FINAL PASSAGE OF HOUSE BILL AS SENATE AMENDED
The Speaker (Representative Horn presiding) stated the question before the House to be final passage of Substitute House Bill No. 1053 as amended by the Senate.
Representative Chandler spoke in favor of passage of the bill.
ROLL CALL
The Clerk called the roll on the final passage of Substitute House Bill No. 1053 as amended by the Senate, and the bill passed the House by the following vote: Yeas - 89, Nays - 0, Absent - 2, Excused - 7.
Voting yea: Representatives Appelwick, Backlund, Ballasiotes, Basich, Beeksma, Benton, Blanton, Boldt, Brown, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chappell, Chopp, Clements, Cody, Cole, Conway, Cooke, Costa, Crouse, Dellwo, Delvin, Dickerson, Ebersole, Elliot, Fisher, R., Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Jacobsen, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mason, Mastin, McMahan, McMorris, Mielke, Mitchell, Mulliken, Ogden, Pelesky, Pennington, Poulsen, Radcliff, Reams, Regala, Romero, Rust, Schmidt, D., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Sommers, Sterk, Talcott, Thibaudeau, Thomas, B., Thomas, L., Thompson, Tokuda, Valle, Van Luven, Veloria, Wolfe and Mr. Speaker - 89.
Absent: Representatives Quall and Stevens - 2.
Excused: Representatives Dyer, Fisher, G., Foreman, Morris, Patterson, Robertson and Schmidt, K. - 7.
Substitute House Bill No. 1053, as amended by the Senate, having received the constitutional majority, was declared passed.
MESSAGES FROM THE SENATE
April 17, 1995
Mr. Speaker:
The President has signed:
ENGROSSED SENATE BILL NO. 5019,
SECOND SUBSTITUTE SENATE BILL NO. 5088,
SUBSTITUTE SENATE BILL NO. 5182,
SUBSTITUTE SENATE BILL NO. 5183,
ENGROSSED SUBSTITUTE SENATE BILL NO. 5190,
SUBSTITUTE SENATE BILL NO. 5209,
ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5342,
SUBSTITUTE SENATE BILL NO. 5402,
SUBSTITUTE SENATE BILL NO. 5403,
and the same are herewith transmitted.
Marty Brown, Secretary
April 18, 1995
Mr. Speaker:
The President has signed:
SUBSTITUTE HOUSE BILL NO. 1220,
SUBSTITUTE HOUSE BILL NO. 1248,
SUBSTITUTE HOUSE BILL NO. 1432,
SUBSTITUTE HOUSE BILL NO. 1677,
HOUSE JOINT MEMORIAL NO. 4028,
HOUSE JOINT MEMORIAL NO. 4029,
and the same are herewith transmitted.
Marty Brown, Secretary
The Speaker (Representative Horn presiding) declared the House to be at ease.
The Speaker (Representative Horn presiding) called the House to order.
RESOLUTION
HOUSE RESOLUTION NO. 95-4668, by Representatives Brumsickle, Chappell, Morris, Pennington and L. Thomas
WHEREAS, The mission statement of the Lewis County Sesquicentennial Committee is "Celebrating the one hundredth fiftieth anniversary of Lewis County by revisiting the past and exploring the future"; and
WHEREAS, Throughout 1995, the citizens of Lewis County are celebrating their heritage as Washington's first county. The Sesquicentennial is a significant milestone for the county and provides a once-in-a-lifetime opportunity to reflect both on the past and the future of this area so rich in people, natural resources, history, and opportunity; and
WHEREAS, Lewis County, Washington's first county, was created by the Oregon Territorial Legislature on December 21, 1845. The legislature proclaimed "That all that portion of Oregon Territory lying north of the Columbia River and west of the Cowlitz up to 54'40" north latitude be and the same is hereby created and organized into a separate county by the name of Lewis County." Because of its size, Lewis was known as "The Mother of All Counties"; and
WHEREAS, The county's current borders were established shortly before Washington became a state in 1889. Today, it is Washington's sixth largest county in land area. With 2,423 square miles, it is the largest county west of the Cascade Mountains; and
WHEREAS, Lewis County is named for Meriwether Lewis, the great explorer of the Lewis and Clark Expedition. His explorations were key in claiming this part of North America for the United States and residents are proud to live in a county bearing his name; and
WHEREAS, Lewis County is home to many of Washington "firsts": The first United States District Court north of San Francisco was held at the Jackson Courthouse, a building that still stands today. The oldest governmental records still in existence in Washington State are from the Board of Lewis County Commissioners in October 1847. Simon Plamondon was the first white settler who settled near present day Toledo; and
WHEREAS, Lewis County is rich in natural resources. For the past 150 years, the land has provided a living to many of the county's citizens in agriculture, mining, and especially its vast forests. Today, the county is enjoying greater economic diversity, but natural resources will always play a vital role to visitors and citizens alike;
NOW, THEREFORE, BE IT RESOLVED, That the House of Representatives of the state of Washington honor Lewis County during its Sesquicentennial year;
BE IT FURTHER RESOLVED, That copies of this resolution be immediately transmitted by the Chief Clerk of the House of Representatives to each member of the Lewis County Sesquicentennial Committee.
Representative Brumsickle moved adoption of the resolution.
Representatives Brumsickle, Chappell and Pennington spoke in favor of adoption of the resolution.
House Resolution No. 4668 was adopted.
There being no objection, the House considered the following bills in the following order: Second Substitute House Bill No. 1027, Engrossed Second Substitute House Bill No. 1156, Second Substitute House Bill No. 1162, Engrossed Substitute House Bill No. 1206, House Bill No. 1224, House Bill No. 1249, House Bill No. 1282, Substitute House Bill No. 1342, Substitute House Bill No. 1348 and Substitute House Bill No. 1430.
SENATE AMENDMENTS TO HOUSE BILL
April 13, 1995
Mr. Speaker:
The Senate has passed SECOND SUBSTITUTE HOUSE BILL NO. 1027 with the following amendments:
Strike everything after the enacting clause and insert the following:
"NEW SECTION. Sec. 1. The legislature finds that in order to improve student learning in Washington's public schools, school districts and the state need to take actions to use the maximum amount of available funding and resources to improve student achievement. The legislature intends to study the state-level education governance system to improve student learning and to reduce unnecessary regulatory oversight. The legislature also finds that if school districts are encouraged to review their expenditures, school districts can develop strategies that will increase the amount of resources used in the classroom.
NEW SECTION. Sec. 2. (1) The joint select committee on education restructuring established in RCW 28A.630.950 shall review the current constitutional and statutory roles and responsibilities of the office of the superintendent of public instruction, the state board of education, the work force training and education coordinating board, the commission on student learning, and educational service districts, and by December 15, 1996, develop a recommendation to the legislature for creating a revised state-level education governance system. The new state-level governance system shall: (a) Focus on the improvement of student learning; (b) result in a reduction of state-level administrative expenditures; (c) provide school district staff and parents technical assistance and leadership; (d) result in minimal regulatory oversight; and (e) have clear lines of authority and accountability.
(2) The select committee may continue its review of laws that inhibit, or do not enhance, student learning.
(3) This section shall expire December 31, 1997.
NEW SECTION. Sec. 3. (1) School district boards of directors are strongly encouraged to review school district expenditures, and to take actions that will increase the percentage of district funds that are used to support the classroom. In order to assist school districts in this effort, the school district financial review program is created. The purpose of the program is to provide funding to school districts to conduct financial reviews and to develop strategies that will increase the amount of resources that are used in the classroom.
(2) The program shall be administered by the superintendent of public instruction, or a public, nonprofit, or private contractor as designated by the superintendent.
(3) The superintendent, or his or her designee, shall establish application and approval requirements for the program. A minimum fifty percent financial match shall be required of school districts. Districts with enrollments larger than five hundred full-time equivalent students that expended less than two-thirds of their total general fund expenditures on teaching and teaching support during the 1993-94 fiscal year shall receive priority in the allocation of funds.
(4) School districts that receive grants shall submit a report to the superintendent, or his or her designee, by December 31, 1995, of actions that the district has taken, or plans to take, to increase classroom expenditures. The superintendent, or his or her designee, shall summarize the information submitted by the districts and present a summary to the fiscal and education policy committees of the legislature before January 15, 1996. If one or more of the fiscal or policy committees find that adequate progress is not being made in redirecting resources to the classroom, the committee or committees shall recommend to the legislature additional measures that should be taken.
(5) The process established in subsections (1) through (4) of this section shall be repeated during calendar year 1997, with the summary in subsection (4) of this section being submitted to the legislature before December 31, 1997.
(6) This section shall expire December 31, 1997.
NEW SECTION. Sec. 4. If specific funding for the purposes of this act, referencing this act by bill number, is not provided by June 30, 1995, in the omnibus appropriations act, this act is null and void.
NEW SECTION. Sec. 5. 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 shall take effect May 1, 1995."
On page 1, line 1 of the title, after "classroom;" strike the remainder of the title and insert "creating new sections; providing an effective date; and declaring an emergency."
and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
Representative Cole: Thank you Mr. Speaker. I would request a ruling on the scope and object of the amendment to Second Substitute House Bill No. 1027.
There being no objection, the House deferred further consideration of Second Substitute House Bill No. 1027 and the bill held it's place on second reading.
There being no objection, the House deferred consideration of Engrossed Second Substitute House Bill No. 1156 and the bill held it's place on third reading.
SENATE AMENDMENTS TO HOUSE BILL
April 10, 1995
Mr. Speaker:
The Senate has passed SECOND SUBSTITUTE HOUSE BILL NO. 1162 with the following amendments:
Strike everything after the enacting clause and insert the following:
"Sec. 1. RCW 70.95E.010 and 1994 c 136 s 1 are each amended to read as follows:
As used in this chapter, the following terms have the meanings indicated unless the context clearly requires otherwise.
(1) "Dangerous waste" shall have the same definition as set forth in RCW 70.105.010(5) and shall include those wastes designated as dangerous by rules adopted pursuant to chapter 70.105 RCW.
(2) "Department" means the department of ecology.
(3) "EPA/state identification number" means the number assigned by the EPA (environmental protection agency) or by the department of ecology to each generator and/or transporter and treatment, storage, and/or disposal facility.
(4) "Extremely hazardous waste" shall have the same definition as set forth in RCW 70.105.010(6) and shall specifically include those wastes designated as extremely hazardous by rules adopted pursuant to chapter 70.105 RCW.
(5) "Fee" means the annual fees imposed under this chapter.
(6) "Generate" means any act or process which produces hazardous waste or first causes a hazardous waste to become subject to regulation.
(7) "Hazardous waste" means and includes all dangerous and extremely hazardous wastes but for the purposes of this chapter excludes all radioactive wastes or substances composed of both radioactive and hazardous components.
(8) (("Known generators" means persons that have notified the department and have received an EPA/state identification number.)) "Hazardous waste generator" means all persons whose primary business activities are identified by the department to generate any quantity of hazardous waste in the calendar year for which the fee is imposed.
(9) "Person" means an individual, trust, firm, joint stock company, partnership, association, state, public or private or municipal corporation, commission, political subdivision of a state, interstate body, the federal government including any agency or officer thereof, and any Indian tribe or authorized tribal organization.
(10) (("Potential generators" means all persons whose primary business activities are identified by the department to be likely to generate any quantity of hazardous wastes.
(11))) "Price deflator" means the United States department of commerce bureau of economic analysis, "Implicit Price Deflator for Gross National Product" for "Government Purchases of Goods and Services," for "State and Local Government."
(((12))) (11) "Recycled for beneficial use" means the use of hazardous waste, either before or after reclamation, as a substitute for a commercial product or raw material, but does not include: (a) Use constituting disposal; (b) incineration; or (c) use as a fuel.
(((13))) (12) "Waste generation site" means any geographical area that has been assigned an EPA/state identification number.
Sec. 2. RCW 70.95E.020 and 1994 sp.s. c 2 s 3 and 1994 c 136 s 2 are each reenacted and amended to read as follows:
A fee is imposed for the privilege of generating ((or potentially generating)) hazardous waste in the state. The annual amount of the fee shall be thirty-five dollars upon every ((known generator or potential)) hazardous waste generator doing business in Washington in the current calendar year or any part thereof. This fee shall be collected by the department ((of revenue)) or its designee. A ((potential)) hazardous waste generator shall be exempt from the fee imposed under this section if the value of products, gross proceeds of sales, or gross income of the business, from all business activities of the ((potential)) hazardous waste generator, is less than twelve thousand dollars in the current calendar year. The department shall, subject to appropriation, use the funds collected from the fees assessed in this subsection to support the activities of the office of waste reduction as specified in RCW 70.95C.030. The fee imposed pursuant to this section is due annually by July 1 of the year following the calendar year for which the fee is imposed((, except the fee scheduled to be imposed for calendar year 1993 shall be imposed on known generators only)).
Sec. 3. RCW 70.95E.050 and 1994 c 136 s 4 are each amended to read as follows:
In administration of this chapter for the enforcement and collection of the fees due and owing under ((this chapter)) RCW 70.95E.020 and 70.95E.030, the department ((of revenue is authorized to)) may apply ((the provisions of chapter 82.32 RCW, except that the provisions of RCW 82.32.045 shall not apply)) RCW 43.17.240.
Sec. 4. RCW 70.95E.090 and 1990 c 114 s 19 are each amended to read as follows:
The department may use funds in the hazardous waste assistance account to provide technical assistance and compliance education assistance to hazardous substance users and waste generators, to provide grants to local governments, and for administration of this chapter. ((The department of revenue shall be appropriated a percentage amount of the total fees collected, not to exceed two percent of the total fees collected, for administration and collection expenses incurred by the department of revenue.))
Technical assistance may include the activities authorized under chapter 70.95C RCW and RCW 70.105.170 to encourage hazardous waste reduction and hazardous use reduction and the assistance provided for by RCW 70.105.100(2).
Compliance education may include the activities authorized under RCW 70.105.100(2) to train local agency officials and to inform hazardous substance users and hazardous waste generators and owners and operators of hazardous waste management facilities of the requirements of chapter 70.105 RCW and related federal laws and regulations. To the extent practicable, the department shall contract with private businesses to provide compliance education.
Grants to local governments shall be used for small quantity generator technical assistance and compliance education components of their moderate risk waste plans as required by RCW 70.105.220.
NEW SECTION. Sec. 5. 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 shall take effect immediately."
On page 1, line 2 of the title, after "fees;" strike the remainder of the title and insert "amending RCW 70.95E.010, 70.95E.050, and 70.95E.090; reenacting and amending RCW 70.95E.020; and declaring an emergency."
and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
MOTION
Representative Chandler moved that the House concur in the Senate amendments to Second Substitute House Bill No. 1162 and pass the bill as amended by the Senate. The motion was carried.
MOTIONS
On motion of Representative Brown, Representative Sommers was excused.
On motion of Representative Talcott, Representative Silver was excused.
FINAL PASSAGE OF HOUSE BILL AS SENATE AMENDED
The Speaker (Representative Horn presiding) stated the question before the House to be final passage of Second Substitute House Bill No. 1162 as amended by the Senate.
Representatives Chandler, Rust and Mastin spoke in favor of passage of the bill.
ROLL CALL
The Clerk called the roll on the final passage of Second Substitute House Bill No. 1162 as amended by the Senate, and the bill passed the House by the following vote: Yeas - 92, Nays - 0, Absent - 1, Excused - 5.
Voting yea: Representatives Appelwick, Backlund, Ballasiotes, Basich, Beeksma, Benton, Blanton, Boldt, Brown, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chappell, Chopp, Clements, Cody, Cole, Conway, Cooke, Costa, Crouse, Delvin, Dickerson, Dyer, Ebersole, Elliot, Fisher, G., Fisher, R., Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Jacobsen, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mason, Mastin, McMahan, McMorris, Mielke, Mitchell, Morris, Mulliken, Ogden, Patterson, Pelesky, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Romero, Rust, Schmidt, D., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Skinner, Smith, Sterk, Stevens, Talcott, Thibaudeau, Thomas, B., Thomas, L., Thompson, Tokuda, Valle, Van Luven, Veloria, Wolfe and Mr. Speaker - 92.
Absent: Representative Dellwo - 1.
Excused: Representatives Foreman, Robertson, Schmidt, K., Silver and Sommers - 5.
Second Substitute House Bill No. 1162, as amended by the Senate, having received the constitutional majority, was declared passed.
SENATE AMENDMENTS TO HOUSE BILL
April 7, 1995
Mr. Speaker:
The Senate has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 1206 with the following amendments:
Strike everything after the enacting clause and insert the following:
"NEW SECTION. Sec. 1. The legislature recognizes that teachers, principals, and district administrators need the ability to make transitions to other public or private sector careers, and that the retirement system should not be a barrier to exercise of employee choice. The legislature also recognizes that teachers, principals, and district administrators need a secure and viable retirement benefit, not only for their own financial protection, but also that public funds are spent prudently for their intended purpose.
It is the legislative intent to create a new public retirement system that balances flexibility with stability, provides both increased employee control of investments and responsible protection of the public's investment in employee benefits, and encourages the pursuit of public sector careers without preventing employees from transitioning into other public or private sector employment.
Therefore, the purpose of chapter . . ., Laws of 1995 (this act) is to continue to provide teachers, principals, and district administrators with a guaranteed pension at retirement age based on years of public service with an element of inflation protection. It is further the purpose of chapter . . ., Laws of 1995 (this act) to create a parallel retirement plan where employees have options regarding the investment of their retirement contributions and have the opportunity, along with the accompanying risk, to receive a full rate of return on their investments and where employees who leave public employment prior to retirement receive a fair and reasonable value from the retirement system.
PART I
DEFINED BENEFIT--TRS III
Sec. 101. RCW 41.32.005 and 1992 c 72 s 4 are each amended to read as follows:
RCW 41.32.010 through 41.32.067 shall apply to members of plan I ((and)), plan II, and plan III.
Sec. 102. RCW 41.32.010 and 1994 c 298 s 3, 1994 c 247 s 2, and 1994 c 197 s 12 are each reenacted and amended to read as follows:
As used in this chapter, unless a different meaning is plainly required by the context:
(1)(a) "Accumulated contributions" for plan I members, means the sum of all regular annuity contributions and, except for the purpose of withdrawal at the time of retirement, any amount paid under RCW 41.50.165(2) with regular interest thereon.
(b) "Accumulated contributions" for plan II members, means the sum of all contributions standing to the credit of a member in the member's individual account, including any amount paid under RCW 41.50.165(2), together with the regular interest thereon.
(2) "Actuarial equivalent" means a benefit of equal value when computed upon the basis of such mortality tables and regulations as shall be adopted by the director and regular interest.
(3) "Annuity" means the moneys payable per year during life by reason of accumulated contributions of a member.
(4) "Member reserve" means the fund in which all of the accumulated contributions of members are held.
(5)(a) "Beneficiary" for plan I members, means any person in receipt of a retirement allowance or other benefit provided by this chapter.
(b) "Beneficiary" for plan II and plan III members, means any person in receipt of a retirement allowance or other benefit provided by this chapter resulting from service rendered to an employer by another person.
(6) "Contract" means any agreement for service and compensation between a member and an employer.
(7) "Creditable service" means membership service plus prior service for which credit is allowable. This subsection shall apply only to plan I members.
(8) "Dependent" means receiving one-half or more of support from a member.
(9) "Disability allowance" means monthly payments during disability. This subsection shall apply only to plan I members.
(10)(a) "Earnable compensation" for plan I members, means:
(i) All salaries and wages paid by an employer to an employee member of the retirement system for personal services rendered during a fiscal year. In all cases where compensation includes maintenance the employer shall fix the value of that part of the compensation not paid in money.
(ii) "Earnable compensation" for plan I members also includes the following actual or imputed payments, which are not paid for personal services:
(A) Retroactive payments to an individual by an employer on reinstatement of the employee in a position, or payments by an employer to an individual in lieu of reinstatement in a position which are awarded or granted as the equivalent of the salary or wages which the individual would have earned during a payroll period shall be considered earnable compensation and the individual shall receive the equivalent service credit.
(B) If a leave of absence, without pay, is taken by a member for the purpose of serving as a member of the state legislature, and such member has served in the legislature five or more years, the salary which would have been received for the position from which the leave of absence was taken shall be considered as compensation earnable if the employee's contribution thereon is paid by the employee. In addition, where a member has been a member of the state legislature for five or more years, earnable compensation for the member's two highest compensated consecutive years of service shall include a sum not to exceed thirty-six hundred dollars for each of such two consecutive years, regardless of whether or not legislative service was rendered during those two years.
(iii) For members employed less than full time under written contract with a school district, or community college district, in an instructional position, for which the member receives service credit of less than one year in all of the years used to determine the earnable compensation used for computing benefits due under RCW 41.32.497, 41.32.498, and 41.32.520, the member may elect to have earnable compensation defined as provided in RCW 41.32.345. For the purposes of this subsection, the term "instructional position" means a position in which more than seventy-five percent of the member's time is spent as a classroom instructor (including office hours), a librarian, or a counselor. Earnable compensation shall be so defined only for the purpose of the calculation of retirement benefits and only as necessary to insure that members who receive fractional service credit under RCW 41.32.270 receive benefits proportional to those received by members who have received full-time service credit.
(iv) "Earnable compensation" does not include:
(A) Remuneration for unused sick leave authorized under RCW 41.04.340, 28A.400.210, or 28A.310.490;
(B) Remuneration for unused annual leave in excess of thirty days as authorized by RCW 43.01.044 and 43.01.041.
(b) "Earnable compensation" for plan II and plan III members, means salaries or wages earned by a member during a payroll period for personal services, including overtime payments, and shall include wages and salaries deferred under provisions established pursuant to sections 403(b), 414(h), and 457 of the United States Internal Revenue Code, but shall exclude lump sum payments for deferred annual sick leave, unused accumulated vacation, unused accumulated annual leave, or any form of severance pay.
"Earnable compensation" for plan II and plan III members also includes the following actual or imputed payments which, except in the case of (b)(ii)(B) of this subsection, are not paid for personal services:
(i) Retroactive payments to an individual by an employer on reinstatement of the employee in a position or payments by an employer to an individual in lieu of reinstatement in a position which are awarded or granted as the equivalent of the salary or wages which the individual would have earned during a payroll period shall be considered earnable compensation, to the extent provided above, and the individual shall receive the equivalent service credit.
(ii) In any year in which a member serves in the legislature the member shall have the option of having such member's earnable compensation be the greater of:
(A) The earnable compensation the member would have received had such member not served in the legislature; or
(B) Such member's actual earnable compensation received for teaching and legislative service combined. Any additional contributions to the retirement system required because compensation earnable under (b)(ii)(A) of this subsection is greater than compensation earnable under (b)(ii)(B) of this subsection shall be paid by the member for both member and employer contributions.
(11) "Employer" means the state of Washington, the school district, or any agency of the state of Washington by which the member is paid.
(12) "Fiscal year" means a year which begins July 1st and ends June 30th of the following year.
(13) "Former state fund" means the state retirement fund in operation for teachers under chapter 187, Laws of 1923, as amended.
(14) "Local fund" means any of the local retirement funds for teachers operated in any school district in accordance with the provisions of chapter 163, Laws of 1917 as amended.
(15) "Member" means any teacher included in the membership of the retirement system. Also, any other employee of the public schools who, on July 1, 1947, had not elected to be exempt from membership and who, prior to that date, had by an authorized payroll deduction, contributed to the member reserve.
(16) "Membership service" means service rendered subsequent to the first day of eligibility of a person to membership in the retirement system: PROVIDED, That where a member is employed by two or more employers the individual shall receive no more than one service credit month during any calendar month in which multiple service is rendered. The provisions of this subsection shall apply only to plan I members.
(17) "Pension" means the moneys payable per year during life from the pension reserve.
(18) "Pension reserve" is a fund in which shall be accumulated an actuarial reserve adequate to meet present and future pension liabilities of the system and from which all pension obligations are to be paid.
(19) "Prior service" means service rendered prior to the first date of eligibility to membership in the retirement system for which credit is allowable. The provisions of this subsection shall apply only to plan I members.
(20) "Prior service contributions" means contributions made by a member to secure credit for prior service. The provisions of this subsection shall apply only to plan I members.
(21) "Public school" means any institution or activity operated by the state of Washington or any instrumentality or political subdivision thereof employing teachers, except the University of Washington and Washington State University.
(22) "Regular contributions" means the amounts required to be deducted from the compensation of a member and credited to the member's individual account in the member reserve. This subsection shall apply only to plan I members.
(23) "Regular interest" means such rate as the director may determine.
(24)(a) "Retirement allowance" for plan I members, means monthly payments based on the sum of annuity and pension, or any optional benefits payable in lieu thereof.
(b) "Retirement allowance" for plan II and plan III members, means monthly payments to a retiree or beneficiary as provided in this chapter.
(25) "Retirement system" means the Washington state teachers' retirement system.
(26)(a) "Service" for plan I members means the time during which a member has been employed by an employer for compensation.
(i) If a member is employed by two or more employers the individual shall receive no more than one service credit month during any calendar month in which multiple service is rendered.
(ii) As authorized by RCW 28A.400.300, up to forty-five days of sick leave may be creditable as service solely for the purpose of determining eligibility to retire under RCW 41.32.470.
(iii) As authorized in RCW 41.32.065, service earned in an out-of-state retirement system that covers teachers in public schools may be applied solely for the purpose of determining eligibility to retire under RCW 41.32.470.
(b) "Service" for plan II and plan III members, means periods of employment by a member for one or more employers for which earnable compensation is earned subject to the following conditions:
(i) A member employed in an eligible position or as a substitute shall receive one service credit month for each month of September through August of the following year if he or she earns earnable compensation for eight hundred ten or more hours during that period and is employed during nine of those months, except that a member may not receive credit for any period prior to the member's employment in an eligible position except as provided in RCW 41.32.812 and 41.50.132;
(ii) If a member is employed either in an eligible position or as a substitute teacher for nine months of the twelve month period between September through August of the following year but earns earnable compensation for less than eight hundred ten hours but for at least six hundred thirty hours, he or she will receive one-half of a service credit month for each month of the twelve month period;
(iii) All other members in an eligible position or as a substitute teacher shall receive service credit as follows:
(A) A service credit month is earned in those calendar months where earnable compensation is earned for ninety or more hours;
(B) A half-service credit month is earned in those calendar months where earnable compensation is earned for at least seventy hours but less than ninety hours; and
(C) A quarter-service credit month is earned in those calendar months where earnable compensation is earned for less than seventy hours.
(iv) Any person who is a member of the teachers' retirement system and who is elected or appointed to a state elective position may continue to be a member of the retirement system and continue to receive a service credit month for each of the months in a state elective position by making the required member contributions.
(v) When an individual is employed by two or more employers the individual shall only receive one month's service credit during any calendar month in which multiple service for ninety or more hours is rendered.
(vi) As authorized by RCW 28A.400.300, up to forty-five days of sick leave may be creditable as service solely for the purpose of determining eligibility to retire under RCW 41.32.470. For purposes of plan II "forty-five days" as used in RCW 28A.400.300 is equal to two service credit months. Use of less than forty-five days of sick leave is creditable as allowed under this subsection as follows:
(A) Less than eleven days equals one-quarter service credit month;
(B) Eleven or more days but less than twenty-two days equals one-half service credit month;
(C) Twenty-two days equals one service credit month;
(D) More than twenty-two days but less than thirty-three days equals one and one-quarter service credit month;
(E) Thirty-three or more days but less than forty-five days equals one and one-half service credit month.
(vii) As authorized in RCW 41.32.065, service earned in an out-of-state retirement system that covers teachers in public schools may be applied solely for the purpose of determining eligibility to retire under RCW 41.32.470.
(viii) The department shall adopt rules implementing this subsection.
(27) "Service credit year" means an accumulation of months of service credit which is equal to one when divided by twelve.
(28) "Service credit month" means a full service credit month or an accumulation of partial service credit months that are equal to one.
(29) "Teacher" means any person qualified to teach who is engaged by a public school in an instructional, administrative, or supervisory capacity. The term includes state, educational service district, and school district superintendents and their assistants and all employees certificated by the superintendent of public instruction; and in addition thereto any full time school doctor who is employed by a public school and renders service of an instructional or educational nature.
(30) "Average final compensation" for plan II and plan III members, means the member's average earnable compensation of the highest consecutive sixty service credit months prior to such member's retirement, termination, or death. Periods constituting authorized leaves of absence may not be used in the calculation of average final compensation except under RCW 41.32.810(2).
(31) "Retiree" means any person in receipt of a retirement allowance or other benefit provided by this chapter resulting from service rendered to an employer while a member. A person is in receipt of a retirement allowance as defined in subsection (24) of this section or other benefit as provided by this chapter when the department mails, causes to be mailed, or otherwise transmits the retirement allowance warrant.
(32) "Department" means the department of retirement systems created in chapter 41.50 RCW.
(33) "Director" means the director of the department.
(34) "State elective position" means any position held by any person elected or appointed to state-wide office or elected or appointed as a member of the legislature.
(35) "State actuary" or "actuary" means the person appointed pursuant to RCW 44.44.010(2).
(36) "Substitute teacher" means:
(a) A teacher who is hired by an employer to work as a temporary teacher, except for teachers who are annual contract employees of an employer and are guaranteed a minimum number of hours; or
(b) Teachers who either (i) work in ineligible positions for more than one employer or (ii) work in an ineligible position or positions together with an eligible position.
(37)(a) "Eligible position" for plan II members from June 7, 1990, through September 1, 1991, means a position which normally requires two or more uninterrupted months of creditable service during September through August of the following year.
(b) "Eligible position" for plan II and plan III on and after September 1, 1991, means a position that, as defined by the employer, normally requires five or more months of at least seventy hours of earnable compensation during September through August of the following year.
(c) For purposes of this chapter an employer shall not define "position" in such a manner that an employee's monthly work for that employer is divided into more than one position.
(d) The elected position of the superintendent of public instruction is an eligible position.
(38) "Plan I" means the teachers' retirement system, plan I providing the benefits and funding provisions covering persons who first became members of the system prior to October 1, 1977.
(39) "Plan II" means the teachers' retirement system, plan II providing the benefits and funding provisions covering persons who first became members of the system on and after October 1, 1977, and prior to the effective date of this act.
(40) "Plan III" means the teachers' retirement system, plan III providing the benefits and funding provisions covering persons who first become members of the system on and after the effective date of this act or who transfer under section 303 of this act.
(41) "Education association" means an association organized to carry out collective bargaining activities, the majority of whose members are employees covered by chapter 41.59 RCW or academic employees covered by chapter 28B.52 RCW.
(42) "Index" means, for any calendar year, that year's annual average consumer price index, Seattle, Washington area, for urban wage earners and clerical workers, all items compiled by the bureau of labor statistics, United States department of labor.
(((41))) (43) "Index A" means the index for the year prior to the determination of a postretirement adjustment.
(((42))) (44) "Index B" means the index for the year prior to index A.
(((43))) (45) "Index year" means the earliest calendar year in which the index is more than sixty percent of index A.
(((44))) (46) "Adjustment ratio" means the value of index A divided by index B.
Sec. 103. RCW 41.32.032 and 1992 c 212 s 17 are each amended to read as follows:
(1) Any teacher, as defined under RCW 41.32.010, who is first employed by a public school on or after June 7, 1984, shall become a member of the retirement system ((as directed under RCW 41.32.780)) if otherwise eligible.
(2) Any person who before June 7, 1984, has established service credit under chapter 41.40 RCW while employed in an educational staff associate position and who is employed in such a position on or after June 7, 1984 has the following options:
(a) To remain a member of the public employees' retirement system notwithstanding the provisions of RCW 41.32.240 or 41.32.780; or
(b) To irrevocably elect to join the retirement system under this chapter and to receive service credit for previous periods of employment in any position included under RCW 41.32.010. This service credit and corresponding employee contribution shall be computed as though the person had then been a member of the retirement system under this chapter. All employee contributions credited to a member under chapter 41.40 RCW for service now to be credited to the retirement system under this chapter shall be transferred to the system and the member shall not receive any credit nor enjoy any rights under chapter 41.40 RCW for those periods of service. The member shall pay any difference between the employee contributions made under chapter 41.40 RCW and transferred under this subsection and what would have been required under this chapter, including interest as set by the director. The member shall be given until July 1, 1989, to make the irrevocable election permitted under this section. The election shall be made by submitting written notification as required by the department requesting credit under this section and by remitting any necessary proof of service or payments within the time set by the department.
Any person, not employed as an educational staff associate on June 7, 1984, may, before June 30 of the fifth school year after that person's return to employment as a teacher, request and establish membership and credit under this subsection.
PLAN III
NEW SECTION. Sec. 104. (1) Sections 104 through 117 of this act shall apply only to plan III members.
(2) Plan III shall consist of two separate elements: (a) A defined benefit portion covered under this subchapter; and (b) a defined contribution portion covered under chapter 41.-- RCW (sections 201 through 209 of this act). All contributions on behalf of the employer paid by an employee shall be made to the defined benefit portion of plan III and shall be nonrefundable when paid to the fund described in RCW 41.50.075(3).
(3) Unless otherwise specified, all references to "plan III" in this subchapter refer to the defined benefit portion of plan III.
NEW SECTION. Sec. 105. All teachers who first become employed by an employer in an eligible position on or after the effective date of this act shall be members of plan III.
NEW SECTION. Sec. 106. A member of the retirement system shall receive a retirement allowance equal to one percent of such member's average final compensation for each service credit year.
NEW SECTION. Sec. 107. Retirement allowances paid under the defined benefit portion of plan III shall have a postretirement cost-of-living allowance calculated and paid as provided in RCW 41.32.770.
NEW SECTION. Sec. 108. (1) Upon retirement for service as prescribed in section 113 of this act or retirement for disability under section 114 of this act, a member shall elect to have the retirement allowance paid pursuant to one of the following options, calculated so as to be actuarially equivalent to each other.
(a) Standard allowance. A member electing this option shall receive a retirement allowance payable throughout such member's life. Upon the death of the retired member, all benefits shall cease.
(b) The department shall adopt rules that allow a member to select a retirement option that pays the member a reduced retirement allowance and upon death, such portion of the member's reduced retirement allowance as the department by rule designates shall be continued throughout the life of and paid to such person or persons as the retiree shall have nominated by written designation duly executed and filed with the department at the time of retirement. The options adopted by the department shall include, but are not limited to, a joint and one hundred percent survivor option and joint and fifty percent survivor option.
(2) A member, if married, must provide the written consent of his or her spouse to the option selected under this section. If a member is married and both the member and the member's spouse do not give written consent to an option under this section, the department shall pay a joint and fifty percent survivor benefit calculated to be actuarially equivalent to the benefit options available under subsection (1) of this section.
NEW SECTION. Sec. 109. Any member or beneficiary eligible to receive a retirement allowance under the provisions of section 113, 114, or 117 of this act shall be eligible to commence receiving a retirement allowance after having filed written application with the department.
(1) Retirement allowances paid to members shall accrue from the first day of the calendar month immediately following such member's separation from employment.
(2) Retirement allowances paid to vested members no longer in service, but qualifying for such an allowance pursuant to section 112 of this act shall accrue from the first day of the calendar month immediately following such qualification.
(3) Disability allowances paid to disabled members shall accrue from the first day of the calendar month immediately following such member's separation from employment for disability.
(4) Retirement allowances paid as death benefits shall accrue from the first day of the calendar month immediately following the member's death.
NEW SECTION. Sec. 110. (1) No retiree shall be eligible to receive such retiree's monthly retirement allowance if he or she is employed in an eligible position as defined in RCW 41.40.010 or 41.32.010, or as a law enforcement officer or fire fighter as defined in RCW 41.26.030, except that a plan III retiree may work in eligible positions on a temporary basis for up to five months per calendar year.
(2) If a retiree's benefits have been suspended under this section, his or her benefits shall be reinstated when the retiree terminates the employment that caused the suspension of benefits. Upon reinstatement, the retiree's benefits shall be actuarially recomputed pursuant to the rules adopted by the department.
NEW SECTION. Sec. 111. (1) A member who is on a paid leave of absence authorized by a member's employer shall continue to receive service credit.
(2) A member who receives compensation from an employer while on an authorized leave of absence to serve as an elected official of a labor organization, and whose employer is reimbursed by the labor organization for the compensation paid to the member during the period of absence, may also be considered to be on a paid leave of absence. This subsection shall only apply if the member's leave of absence is authorized by a collective bargaining agreement that provides that the member retains seniority rights with the employer during the period of leave. The earnable compensation reported for a member who establishes service credit under this subsection may not be greater than the salary paid to the highest paid job class covered by the collective bargaining agreement.
(3) Except as specified in subsection (4) of this section, a member shall be eligible to receive a maximum of two years service credit during a member's entire working career for those periods when a member is on an unpaid leave of absence authorized by an employer. Such credit may be obtained only if:
(a) The member makes the contribution on behalf of the employer, plus interest, as determined by the department; and
(b) The member makes the employee contribution, plus interest, as determined by the department, to the defined contribution portion.
The contributions required shall be based on the average of the member's earnable compensation at both the time the authorized leave of absence was granted and the time the member resumed employment.
(4) A member who leaves the employ of an employer to enter the armed forces of the United States shall be entitled to retirement system service credit for up to four years of military service if within ninety days of the member's honorable discharge from the United States armed forces, the member applies for reemployment with the employer who employed the member immediately prior to the member entering the United States armed forces.
The department shall bill the employer for its contribution required under this act for the period of military service, plus interest as determined by the department. Service credit under this subsection may be obtained only if the member makes the employee contribution plus interest to the defined contribution portion as determined by the department.
The contributions required shall be based on the average of the member's earnable compensation at both the time the member left the employ of the employer to enter the armed forces and the time the member resumed employment.
NEW SECTION. Sec. 112. (1) The director may pay a member eligible to receive a retirement allowance or the member's beneficiary a lump sum payment in lieu of a monthly benefit if the initial monthly benefit would be less than one hundred dollars. The one hundred dollar limit shall be increased by three percent compounded annually on January 1. The lump sum payment shall be the actuarial equivalent of the monthly benefit.
(2) Persons covered under the provisions of subsection (1) of this section may upon returning to member status reinstate all previous service by depositing the lump sum payment received, with interest as computed by the director, within two years of returning to service or prior to retiring again, whichever comes first. In computing the amount due, the director shall exclude the accumulated value of the normal payments the member would have received while in beneficiary status if the lump sum payment had not occurred.
(3) Any member who receives a settlement under this section shall be deemed to be retired from this system.
NEW SECTION. Sec. 113. (1) NORMAL RETIREMENT. Any member who has vested and attained at least age sixty-five shall be eligible to retire and to receive a retirement allowance computed according to the provisions of section 106 of this act.
(2) EARLY RETIREMENT. Any member who has attained at least age fifty-five and has completed at least ten years of service shall be eligible to retire and to receive a retirement allowance computed according to the provisions of section 106 of this act, except that a member retiring pursuant to this subsection shall have the retirement allowance actuarially reduced to reflect the difference in the number of years between age at retirement and the attainment of age sixty-five.
NEW SECTION. Sec. 114. (1) A member of the retirement system who becomes totally incapacitated for continued employment by an employer as determined by the department shall be eligible to receive an allowance under the provisions of plan III. The member shall receive a monthly disability allowance computed as provided for in section 106 of this act and shall have this allowance actuarially reduced to reflect the difference in the number of years between age at disability and the attainment of age sixty-five.
Any member who receives an allowance under the provisions of this section shall be subject to comprehensive medical examinations as required by the department. If these medical examinations reveal that a member has recovered from the incapacitating disability and the member is offered reemployment by an employer at a comparable compensation, the member shall cease to be eligible for the allowance.
(2) If the recipient of a monthly retirement allowance under this section dies, any further benefit payments shall be conditioned by the payment option selected by the retiree as provided in section 108 of this act.
NEW SECTION. Sec. 115. (1) An active member shall become vested in the right to a benefit upon completing ten years of service or upon completing five years of service and attaining age fifty-five.
(2) A vested member who separates or has separated may remain a member during the period of such member's absence from service for the exclusive purpose only of receiving a retirement allowance under the provisions of section 113 of this act.
(3) The retirement allowance payable under section 113 of this act to a member who separates after having completed at least twenty years of service shall be increased by twenty-five one-hundredths of one percent, compounded for each month from the date of separation to the date that the retirement allowance commences.
NEW SECTION. Sec. 116. A nonvested member who leaves service and then reenters membership must earn an additional twelve service credit months to restore past service credit in the defined benefit portion of plan III.
NEW SECTION. Sec. 117. If a member who is vested dies prior to retirement, the surviving spouse or eligible child or children shall receive a retirement allowance computed as provided in section 108 of this act actuarially reduced to reflect a joint and one hundred percent survivor option and if the member was not eligible for normal retirement at the date of death a further reduction as described in section 113(2) of this act.
If the surviving spouse who is receiving the retirement allowance dies leaving a child or children under the age of majority, then such child or children shall continue to receive an allowance in an amount equal to that which was being received by the surviving spouse, share and share alike, until such child or children reach the age of majority.
If there is no surviving spouse eligible to receive an allowance at the time of the member's death, such member's child or children under the age of majority shall receive an allowance, share and share alike. The allowance shall be calculated with the assumption that the age of the spouse and member were equal at the time of the member's death.
NEW SECTION. Sec. 118. Sections 104 through 117 of this act are designated as a subchapter within chapter 41.32 RCW with the subchapter heading "Provisions Applicable to Plan III."
PART II
DEFINED CONTRIBUTION PORTION OF PLAN III
NEW SECTION. Sec. 201. The purpose of chapter . . ., Laws of 1995 (this act) is to:
(1) Provide a fair and reasonable value from the retirement system for those who leave public employment before retirement;
(2) Increase flexibility for such employees to make transitions into other public or private sector employment;
(3) Increase employee options for addressing retirement needs, personal financial planning, and career transitions; and
(4) Continue the legislature's established policy of having employees contribute toward their retirement benefits.
NEW SECTION. Sec. 202. As used in this chapter, the following terms have the meanings indicated:
(1) "Actuary" means the state actuary or the office of the state actuary.
(2) "Board" means the employee retirement benefits board authorized in chapter 41.50 RCW.
(3) "Department" means the department of retirement systems.
(4) "Compensation" for purposes of this chapter is the same as "earnable compensation" for plan III in chapter 41.32 RCW.
(5) "Member" means any employee included in the membership of a retirement system as provided for plan III in chapter 41.32 RCW.
(6) "Member account" means the sum of the contributions and earnings on behalf of the member.
(7) "Retiree" means any member in receipt of an allowance or other benefit provided by this chapter resulting from service rendered to an employer by such member.
NEW SECTION. Sec. 203. (1) This chapter applies only to members of plan III retirement systems created under chapter 41.32 RCW.
(2) Plan III consists of two separate elements: (a) A defined benefit portion covered under sections 101 through 117, chapter . . ., Laws of 1995 (sections 101 through 117 of this act); and (b) a defined contribution portion covered under this chapter. Unless specified otherwise, all references to "plan III" in this chapter refer to the defined contribution portion of plan III.
NEW SECTION. Sec. 204. (1) A member shall contribute from his or her compensation according to one of the following rate structures:
Option A Contribution Rate
All Ages 5.0% fixed
Option B
Up to Age 35 5.0%
Age 35 to 44 6.0%
Age 45 and above 7.5%
Option C
Up to Age 35 6.0%
Age 35 to 44 7.5%
Age 45 and above 8.5%
(2) The board shall have the right to offer contribution rate options in addition to those listed in subsection (1) of this section, provided that no significant additional administrative costs are created. All options offered by the board shall conform to the requirements stated in subsections (3) and (4) of this section.
(3) Within ninety days of the date that an employee becomes a member of plan III, he or she has an irrevocable option to choose one of the above contribution rate structures. If the member does not select an option within this ninety-day period, he or she shall be assigned option A. Such assignment shall be irrevocable.
(4) Contributions shall begin the first day of the month immediately following the earlier of the selection of an option or the end of the ninety-day period.
NEW SECTION. Sec. 205. The legislature may authorize contributions to the members' accounts for a biennium through budget appropriation.
NEW SECTION. Sec. 206. The member's account shall be invested by the state investment board unless the member elects to self direct investments as authorized by the board. Members who make this election shall pay the expenses for self-directed investment.
NEW SECTION. Sec. 207. (1) If the member retires, becomes disabled, or otherwise terminates employment, the balance in the member's account may be distributed in accordance with an option selected by the member either as a lump sum or pursuant to other options authorized by the board.
(2) If the member dies while in service, the balance of the member's account may be distributed in accordance with an option selected by the member either as a lump sum or pursuant to other options authorized by the board. The distribution shall be made to such person or persons as the member shall have nominated by written designation duly executed and filed with the department. If there be no such designated person or persons still living at the time of the member's death, the balance of the member's account in the retirement system, less any amount identified as owing to an obligee upon withdrawal of such account balance pursuant to a court order filed under RCW 41.50.670, shall be paid to the member's surviving spouse as if in fact such spouse had been nominated by written designation, or if there is no surviving spouse, then to such person or persons, trust, or organization as the member shall have nominated by written designation duly executed and filed with the department.
(3) The distribution under subsections (1) or (2) of this section shall be less any amount identified as owing to an obligee upon withdrawal pursuant to a court order filed under RCW 41.50.670.
NEW SECTION. Sec. 208. (1) Subject to subsections (2) and (3) of this section, the right of a person to a pension, an annuity, a retirement allowance, any optional benefit, any other right accrued or accruing to any person under the provisions of this chapter, and the various funds created by chapter . . ., Laws of 1995 (this act) and all moneys and investments and income thereof, is hereby exempt from any state, county, municipal, or other local tax, and shall not be subject to execution, garnishment, attachment, the operation of bankruptcy or insolvency laws, or other process of law whatsoever, and shall be unassignable.
(2) This section shall not be deemed to prohibit a beneficiary of a retirement allowance from authorizing deductions therefrom for payment of premiums due on any group insurance policy or plan issued for the benefit of a group comprised of public employees of the state of Washington or its political subdivisions and that has been approved for deduction in accordance with rules that may be adopted by the state health care authority and/or the department. This section shall not be deemed to prohibit a beneficiary of a retirement allowance from authorizing deductions therefrom for payment of dues and other membership fees to any retirement association or organization the membership of which is composed of retired public employees, if a total of three hundred or more of such retired employees have authorized such deduction for payment to the same retirement association or organization.
(3) Subsection (1) of this section shall not prohibit the department from complying with (a) a wage assignment order for child support issued pursuant to chapter 26.18 RCW, (b) an order to withhold and deliver issued pursuant to chapter 74.20A RCW, (c) a notice of payroll deduction issued pursuant to RCW 26.23.060, (d) a mandatory benefits assignment order issued by the department, (e) a court order directing the department to pay benefits directly to an obligee under a dissolution order as defined in RCW 41.50.500(3) which fully complies with RCW 41.50.670 and 41.50.700, or (f) any administrative or court order expressly authorized by federal law.
NEW SECTION. Sec. 209. (1) The retirement plan created by this chapter shall be administered so as to comply with the federal Internal Revenue Code, Title 26 U.S.C., and specifically with plan qualification requirements imposed on governmental plans by section 401(a) of the Internal Revenue Code.
(2) Any section or provision of this chapter which may be susceptible to more than one construction shall be interpreted in favor of the construction most likely to satisfy requirements imposed by section 401(a) of the Internal Revenue Code.
(3) If any section or provision of this chapter is found to be in conflict with the plan qualification requirements for governmental plans in section 401(a) of the Internal Revenue Code, the conflicting part of this chapter is hereby inoperative solely to the extent of the conflict, and such finding shall not affect the operation of the remainder of this chapter.
NEW SECTION. Sec. 210. Sections 201 through 209 of this act shall constitute a new chapter in Title 41 RCW.
PART III
MISCELLANEOUS
NEW SECTION. Sec. 301. A new section is added to chapter 41.50 RCW to read as follows:
(1) The employee retirement benefits board is created within the department of retirement systems.
(2) The board shall be composed of eight members appointed by the governor and one ex officio member as follows:
(a) Three members representing the public employees' retirement system: One retired, two active. The members shall be appointed from a list of nominations submitted by organizations representing each category. The initial term of appointment shall be two years for the retired member, one year for one active member, and three years for the remaining active member.
(b) Three members representing the teachers' retirement system: One retired, two active. The members shall be appointed from a list of nominations submitted by organizations representing each category. The initial term of appointment shall be one year for the retired member, two years for one active member, and three years for the remaining active member.
(c) Two members with experience in defined contribution plan administration. The initial term for these members shall be two years for one member and three years for the remaining member.
(d) The director of the department shall serve ex officio and shall be the chair of the board.
(3) After the initial appointments, members shall be appointed to three-year terms.
(4) The board shall meet at least quarterly during the calendar year, at the call of the chair.
(5) Members of the board shall serve without compensation but shall receive travel expenses as provided for in RCW 43.03.050 and 43.03.060. Such travel expenses shall be reimbursed by the department from the retirement system expense fund.
(6) The board shall adopt rules governing its procedures and conduct of business.
(7) The actuary shall perform all actuarial services for the board and provide advice and support.
(8) The state investment board shall provide advice and support to the board.
NEW SECTION. Sec. 302. A new section is added to chapter 41.50 RCW to read as follows:
The board shall adopt rules as necessary and exercise all the powers and perform all duties prescribed by law with respect to:
(1) The preselection of options for members to choose from for self-directed investment deemed by the board to be in the best interest of the member. At the board's request, the state investment board may provide investment options for purposes of this subsection;
(2) The selection of optional benefit payment schedules available to members and survivors of members upon the death, disability, retirement, or termination of the member. The optional benefit payments may include but not be limited to: Fixed and participating annuities, joint and survivor annuities, and payments that bridge to social security or defined benefit plan payments;
(3) Approval of actuarially equivalent annuities that may be purchased from the combined plan II and plan III funds under RCW 41.50.075 (2) or (3);
(4) Determination of the basis for administrative charges to the self-directed investment fund to offset self-directed account expenses; and
(5) Selection of investment options for the deferred compensation program.
NEW SECTION. Sec. 303. A new section is added to chapter 41.32 RCW under the subchapter heading "Plan II" to read as follows:
(1) Every plan II member employed by an employer in an eligible position may make an irrevocable option to transfer to plan III. For those who elect to transfer:
(a) All service credit in plan II shall be transferred to the defined benefit portion of plan III.
(b) The accumulated contributions in plan II shall be transferred to the member's account in the defined contribution portion established in sections 201 through 209 of this act, pursuant to procedures developed by the department and subject to section 209 of this act.
(c) A member vested on the effective date of this act under plan II shall be automatically vested in plan III upon transfer.
(d) Members employed by an employer in an eligible position on January 1, 1998, who request to transfer to plan III by January 1, 1998, shall have their account in the defined contribution portion of plan III, other than those accumulated contributions attributable to restorations made under RCW 41.50.165(2), increased by twenty percent of their plan II accumulated contributions as of January 1, 1996. If the member who requests to transfer dies before January 1, 1998, the additional payment provided by this subsection shall be paid to the member's estate, or such person or persons, trust, or organization as the member shall have nominated by written designation duly executed and filed with the department.
(e) The legislature reserves the right to discontinue the right to transfer under this section.
(2) This subsection shall also apply to dual members as provided in section 320 of this act.
(3) Any member who elects to transfer to plan III and has eligible unrestored withdrawn contributions in plan II, may subsequently restore such contributions under the provisions of RCW 41.32.825. The restored plan II service credit will be automatically transferred to plan III. Contributions restored will be transferred to the member's account in plan III.
(4) Anyone previously retired from plan II is prohibited from transferring to plan III.
NEW SECTION. Sec. 304. A new section is added to chapter 41.32 RCW under the subchapter heading "Plan II" to read as follows:
Any person who elected pursuant to RCW 41.32.032(2)(a) to remain a member of the public employees' retirement system under chapter 41.40 RCW may make an irrevocable option to transfer to plan III pursuant to section 303 of this act, PROVIDED THAT:
(1) Only service credit for previous periods of employment in a position covered by RCW 41.32.010 is transferred to plan III;
(2) Equivalent accumulated employee and employer contributions attributable to service covered by subsection (1) of this section are transferred to plan III;
(3) Employer contributions transferred under this section shall be paid into the teachers' retirement system combined plan II and III fund.
Any person, not employed as an educational staff associate on the effective date of this act may choose, within one year of the person's return to employment as a teacher, to transfer to plan III under this section.
Sec. 305. RCW 41.45.010 and 1989 c 273 s 1 are each amended to read as follows:
It is the intent of the legislature to provide a dependable and systematic process for funding the benefits provided to members and retirees of the public employees' retirement system, chapter 41.40 RCW; the teachers' retirement system, chapter 41.32 RCW; the law enforcement officers' and fire fighters' retirement system, chapter 41.26 RCW; and the Washington state patrol retirement system, chapter 43.43 RCW.
The funding process established by this chapter is intended to achieve the following goals:
(1) To continue to fully fund the public employees' retirement system plan II, the teachers' retirement system plans II and III, and the law enforcement officers' and fire fighters' retirement system plan II as provided by law;
(2) To fully amortize the total costs of the public employees' retirement system plan I, the teachers' retirement system plan I, and the law enforcement officers' and fire fighters' retirement system plan I not later than June 30, 2024;
(3) To establish predictable long-term employer contribution rates which will remain a relatively constant proportion of the future state budgets; and
(4) To fund, to the extent feasible, benefit increases for plan I members and all benefits for plan II and III members over the working lives of those members so that the cost of those benefits are paid by the taxpayers who receive the benefit of those members' service.
Sec. 306. RCW 41.45.020 and 1989 c 273 s 2 are each amended to read as follows:
As used in this chapter, the following terms have the meanings indicated unless the context clearly requires otherwise.
(1) "Council" means the economic and revenue forecast council created in RCW ((82.01.130)) 82.33.010.
(2) "Department" means the department of retirement systems.
(3) "Law enforcement officers' and fire fighters' retirement system plan I," and "law enforcement officers' and fire fighters' retirement system plan II" mean((s)) the benefits and funding provisions ((covering persons who first became members of the law enforcement officers' and fire fighters' retirement system prior to October 1, 1977.
(4) "Law enforcement officers' and fire fighters' retirement system plan II" means the benefits and funding provisions covering persons who first became members of the law enforcement officers' and fire fighters' retirement system on or after October 1, 1977)) under chapter 41.26 RCW.
(((5))) (4) "Public employees' retirement system plan I" ((means the benefits and funding provisions covering persons who first became members of the public employees' retirement system prior to October 1, 1977.
(6) "Public employees' retirement system plan II" means the benefits and funding provisions covering persons who first became members of the public employees' retirement system on or after October 1, 1977)) and "public employees' retirement system plan II" mean the benefits and funding provisions under chapter 41.40 RCW.
(((7))) (5) "Teachers' retirement system plan I," "teachers' retirement system plan II," and "teachers' retirement system plan III" mean((s)) the benefits and funding provisions ((covering persons who first became members of the teachers' retirement system prior to October 1, 1977.
(8) "Teachers' retirement system plan II" means the benefits and funding provisions covering persons who first became members of the teachers' retirement system on or after October 1, 1977)) under chapter 41.32 RCW.
(((9))) (6) "Washington state patrol retirement system" means the retirement benefits provided under chapter 43.43 RCW.
(7) "Unfunded liability" means the unfunded actuarial accrued liability of a retirement system.
(((10))) (8) "Actuary" or "state actuary" means the state actuary employed under chapter 44.44 RCW.
(((11))) (9) "State retirement systems" means the retirement systems listed in RCW 41.50.030.
Sec. 307. RCW 41.45.030 and 1993 c 519 s 17 are each amended to read as follows:
(1) Beginning September 1, ((1989)) 1995, and every ((six)) two years thereafter, the state actuary shall submit to the council information regarding the experience and financial condition of each state retirement system. The council shall review this and such other information as it may require.
(2) ((The council shall review the information submitted by the state actuary and)) By December 31, 1995, and every two years thereafter, the council, by affirmative vote of five councilmembers, shall adopt the following long-term economic assumptions:
(a) Growth in system membership;
(b) Growth in salaries, exclusive of merit or longevity increases;
(c) Growth in inflation; and
(d) Investment rate of return.
(3) The council shall work with the department of retirement systems, the state actuary, and the executive director of the state investment board, and shall consider long-term historical averages, in developing the economic assumptions. The assumptions adopted by the council shall be used by the state actuary in conducting valuation studies of the state retirement systems.
(((3) The council may utilize information provided by the state actuary and such other information as it may request.))
Sec. 308. RCW 41.45.050 and 1989 c 273 s 5 are each amended to read as follows:
(1) ((Beginning September 1, 1990,)) Employers of members of the public employees' retirement system, the teachers' retirement system, and the Washington state patrol retirement system shall make contributions to those systems based on the rates established in RCW 41.45.060 and 41.45.070.
(2) ((Beginning September 1, 1990,)) The state shall make contributions to the law enforcement officers' and fire fighters' retirement system based on the rates established in RCW 41.45.060 and 41.45.070. The state treasurer shall transfer the required contributions each month on the basis of salary data provided by the department.
(3) ((Beginning September 1, 1990,)) The department shall bill employers, and the state shall make contributions to the law enforcement officers' and fire fighters' retirement system, using the combined rates established in RCW 41.45.060 and 41.45.070 regardless of the level of pension funding provided in the biennial budget. Any member of an affected retirement system may, by mandamus or other appropriate proceeding, require the transfer and payment of funds as directed in this section.
(4) The contributions received for the public employees' retirement system shall be allocated between the public employees' retirement system plan I fund and public employees' retirement system plan II fund as follows: The contributions necessary to fully fund the public employees' retirement system plan II employer contribution required by RCW 41.40.650 shall first be deposited in the public employees' retirement system plan II fund. All remaining public employees' retirement system employer contributions shall be deposited in the public employees' retirement system plan I fund.
((The employer contributions for the teachers' retirement system, and the state contributions for the law enforcement officers' and fire fighters' retirement system shall be allocated in the same manner as the public employees' retirement system and in accordance with the law enforcement officers' and fire fighters' retirement system plan II and the teachers' retirement system plan II contribution rates required by RCW 41.26.450 and 41.32.775 respectively)) (5) The contributions received for the teachers' retirement system shall be allocated between the plan I fund and the combined plan II and plan III fund as follows: The contributions necessary to fully fund the combined plan II and plan III employer contribution shall first be deposited in the combined plan II and plan III fund. All remaining teachers' retirement system employer contributions shall be deposited in the plan I fund.
(6) The contributions received under RCW 41.26.450 for the law enforcement officers' and fire fighters' retirement system shall be allocated between the law enforcement officers' and fire fighters' retirement system plan I and the law enforcement officers' and fire fighters' retirement system plan II fund as follows: The contributions necessary to fully fund the law enforcement officers' and fire fighters' retirement system plan II employer contributions shall be first deposited in the law enforcement officers' and fire fighters' retirement system plan II fund. All remaining law enforcement officers' and fire fighters' retirement system employer contributions shall be deposited in the law enforcement officers' and fire fighters' retirement system plan I fund.
Sec. 309. RCW 41.45.060 and 1993 c 519 s 19 are each amended to read as follows:
(1) ((For the period of September 1, 1993, through August 31, 1995, the basic state contribution rate for the law enforcement officers' and fire fighters' retirement system, and the basic employer contribution rates for the public employees' retirement system, the teachers' retirement system, and the Washington state patrol retirement system shall be as determined in the 1991 valuations prepared by the office of the state actuary.)) The state actuary shall provide actuarial valuation results based on the assumptions adopted under RCW 41.45.030.
(2) Not later than September 30, ((1994)) 1996, and every two years thereafter((:
(a))), consistent with the assumptions adopted under RCW 41.45.030, the council shall adopt ((the contributions to be used in the ensuing biennial period for the systems specified in subsection (1) of this section.
(b))) both: (a) A basic state contribution rate for the law enforcement officers' and fire fighters' retirement system; and (b) basic employer contribution rates for the public employees' retirement system plan I, the teachers' retirement system plan I, and the Washington state patrol retirement system to be used in the ensuing biennial period.
(3) The employer and state contribution rates adopted by the council shall be the level percentages of pay that are needed:
(a) To fully amortize the total costs of the public employees' retirement system plan I, the teachers' retirement system plan I, the law enforcement officers' and fire fighters' retirement system plan I, and the unfunded liability of the Washington state patrol retirement system not later than June 30, 2024; and
(b) To also continue to fully fund the public employees' retirement system plan II, the teachers' retirement system plans II and III, and the law enforcement officers' and fire fighters' retirement system plan II in accordance with RCW 41.40.650, 41.26.450, and this section.
(4) The aggregate actuarial cost method shall be used to calculate a combined plan II and III employer contribution rate.
(5) The council shall immediately notify the directors of the office of financial management and department of retirement systems of the state and employer contribution rates adopted ((under (a) of this subsection)).
(((c))) (6) The director of the department of retirement systems shall collect those rates adopted by the council ((under this chapter)).
Sec. 310. RCW 41.45.070 and 1990 c 18 s 2 are each amended to read as follows:
(1) ((Beginning September 1, 1991,)) In addition to the basic employer contribution rate established in RCW 41.45.060, the department shall also charge employers of public employees' retirement system, teachers' retirement system, or Washington state patrol retirement system members an additional supplemental rate to pay for the cost of additional benefits, if any, granted to members of those systems ((after January 1, 1990)). The supplemental contribution rates required by this section shall be calculated by the state actuary and shall be charged regardless of language to the contrary contained in the statute which authorizes additional benefits.
(2) ((Beginning September 1, 1991,)) In addition to the basic state contribution rate established in RCW 41.45.060 for the law enforcement officers' and fire fighters' retirement system the department shall also establish a supplemental rate to pay for the cost of additional benefits, if any, granted to members of the law enforcement officers' and fire fighters' retirement system ((after January 1, 1990)). This supplemental rate shall be calculated by the state actuary and the state treasurer shall transfer the additional required contributions regardless of language to the contrary contained in the statute which authorizes the additional benefits.
(3) The supplemental rate charged under this section to fund benefit increases provided to active members of the public employees' retirement system plan I, the teachers' retirement system plan I, the law enforcement officers' and fire fighters' retirement system plan I, and Washington state patrol retirement system, shall be calculated as the level percentage of all members' pay needed to fund the cost of the benefit not later than June 30, 2024.
(4) The supplemental rate charged under this section to fund benefit increases provided to active and retired members of the public employees' retirement system plan II, the teachers' retirement system plan II and plan III, or the law enforcement officers' and fire fighters' retirement system plan II, shall be calculated as the level percentage of all members' pay needed to fund the cost of the benefit, as calculated under RCW 41.40.650, 41.32.775, or 41.26.450, respectively.
(5) The supplemental rate charged under this section to fund postretirement adjustments which are provided on a nonautomatic basis to current retirees shall be calculated as the percentage of pay needed to fund the adjustments as they are paid to the retirees. The supplemental rate charged under this section to fund automatic postretirement adjustments for active or retired members of the public employees' retirement system plan I and the teachers' retirement system plan I shall be calculated as the level percentage of pay needed to fund the cost of the automatic adjustments not later than June 30, 2024.
NEW SECTION. Sec. 311. A new section is added to chapter 41.45 RCW to read as follows:
(1) The required contribution rate for members of the plan II teachers' retirement system shall be fixed at the rates in effect on the effective date of this act, subject to the following:
(a) Beginning September 1, 1998, except as provided in (b) of this subsection, the employee contribution rate shall not exceed the employer plan II and III rates adopted under RCW 41.45.060 and 41.45.070 for the teachers' retirement system;
(b) In addition, the employee contribution rate for plan II shall be increased by fifty percent of the contribution rate increase caused by any plan II benefit increase passed after the effective date of this act.
(2) The required plan II and III contribution rates for employers shall be adopted in the manner described in RCW 41.45.060.
Sec. 312. RCW 41.50.075 and 1991 c 35 s 108 are each amended to read as follows:
(1) Two funds are hereby created and established in the state treasury to be known as the Washington law enforcement officers' and fire fighters' system plan I retirement fund, and the Washington law enforcement officers' and fire fighters' system plan II retirement fund which shall consist of all moneys paid into them in accordance with the provisions of this chapter and chapter 41.26 RCW, whether such moneys take the form of cash, securities, or other assets. The plan I fund shall consist of all moneys paid to finance the benefits provided to members of the law enforcement officers' and fire fighters' retirement system plan I, and the plan II fund shall consist of all moneys paid to finance the benefits provided to members of the law enforcement officers' and fire fighters' retirement system plan II.
(2) All of the assets of the Washington state teachers' retirement system shall be credited according to the purposes for which they are held, to two funds to be maintained in the state treasury, namely, the teachers' retirement system plan I fund and the teachers' retirement system combined plan II and III fund. The plan I fund shall consist of all moneys paid to finance the benefits provided to members of the Washington state teachers' retirement system plan I, and the combined plan II and III fund shall consist of all moneys paid to finance the benefits provided to members of the Washington state teachers' retirement system plan II and III.
(3) There is hereby established in the state treasury two separate funds, namely the public employees' retirement system plan I fund and the public employees' (([retirement system])) retirement system plan II fund. The plan I fund shall consist of all moneys paid to finance the benefits provided to members of the public employees' retirement system plan I, and the plan II fund shall consist of all moneys paid to finance the benefits provided to members of the public employees' retirement system plan II.
(4) There is hereby established in the state treasury the plan III defined contribution fund which shall consist of all contributions and earnings paid on behalf of members, except as otherwise provided.
Sec. 313. RCW 41.50.110 and 1990 c 8 s 3 are each amended to read as follows:
(1) Notwithstanding any provision of law to the contrary, the retirement system expense fund is hereby redesignated as the department of retirement systems expense fund from which shall be paid the expenses of the administration of the department and the expenses of administration of the retirement systems created in chapters 2.10, 2.12, 41.26, 41.32, 41.40, 41.-- (sections 201 through 209 of this act), and 43.43 RCW.
(2) In order to reimburse the department of retirement systems expense fund on an equitable basis the department shall ascertain and report to each employer, as defined in RCW 41.26.030, 41.32.010, or 41.40.010, the sum necessary to defray its proportional share of the entire expense of the administration of the retirement system that the employer participates in during the ensuing biennium or fiscal year whichever may be required. Such sum is to be computed in an amount directly proportional to the estimated entire expense of the administration as the ratio of monthly salaries of the employer's members bears to the total salaries of all members in the entire system. It shall then be the duty of all such employers to include in their budgets or otherwise provide the amounts so required.
(3) The department shall compute and bill each employer, as defined in RCW 41.26.030, 41.32.010, or 41.40.010, at the end of each month for the amount due for that month to the department of retirement systems expense fund and the same shall be paid as are its other obligations. Such computation as to each employer shall be made on a percentage rate of salary established by the department. However, the department may at its discretion establish a system of billing based upon calendar year quarters in which event the said billing shall be at the end of each such quarter.
(4) The director may adjust the expense fund contribution rate for each system at any time when necessary to reflect unanticipated costs or savings in administering the department.
(((3) All employers shall pay a standard fee to the department to cover the cost of administering the system.)) (5) An employer who fails to submit timely and accurate reports to the department may be assessed an additional fee related to the increased costs incurred by the department in processing the deficient reports. Fees paid under this subsection shall be deposited in the retirement system expense fund.
(a) Every six months the department shall determine the amount of an employer's fee by reviewing the timeliness and accuracy of the reports submitted by the employer in the preceding six months. If those reports were not both timely and accurate the department may prospectively assess an additional fee under this subsection.
(b) An additional fee assessed by the department under this subsection shall not exceed fifty percent of the standard fee.
(c) The department shall adopt rules implementing this section.
(6) Expenses incurred pursuant to section 206 of this act shall be deducted from the defined contribution fund in accordance with rules established by the board under section 302 of this act.
NEW SECTION. Sec. 314. A new section is added to chapter 41.50 RCW to read as follows:
(1) "Employee" as used in this section and section 315 of this act includes all full-time, part-time, and career seasonal employees of the state, a county, a municipality, or other political subdivision of the state, whether or not covered by civil service; elected and appointed officials of the executive branch of the government, including full-time members of boards, commissions, or committees; justices of the supreme court and judges of the court of appeals and of the superior and district courts; and members of the state legislature or of the legislative authority of any county, city, or town.
(2) The state, through the department, and any county, municipality, or other political subdivision of the state acting through its principal supervising official or governing body is authorized to contract with an employee to defer a portion of that employee's income, which deferred portion shall in no event exceed the amount allowable under 26 U.S.C. Sec. 457, and deposit or invest such deferred portion in a credit union, savings and loan association, bank, or mutual savings bank or purchase life insurance, shares of an investment company, or fixed and/or variable annuity contracts from any insurance company or any investment company licensed to contract business in this state.
(3) The department can provide such plans as the employee retirement benefits board, established under section 301 of this act, deems are in the interests of state employees. In addition to the types of investments described in this section, the department may invest the deferred portion of an employee's income, without limitation as to amount, in any of the class of investments described in RCW 43.84.150 as in effect on January 1, 1981. Any income deferred under such a plan shall continue to be included as regular compensation, for the purpose of computing the state or local retirement and pension benefits earned by any employee.
(4) Coverage of an employee under a deferred compensation plan under this section shall not render such employee ineligible for simultaneous membership and participation in any pension system for public employees.
NEW SECTION. Sec. 315. A new section is added to chapter 41.50 RCW to read as follows:
(1) The deferred compensation principal account is hereby created in the state treasury. Any deficiency in the deferred compensation administrative account caused by an excess of administrative expenses disbursed from that account over earnings of investments of balances credited to that account shall be eliminated by transferring moneys to that account from the deferred compensation principal account.
(2) The amount of compensation deferred by employees under agreements entered into under the authority contained in section 314 of this act shall be paid into the deferred compensation principal account and shall be sufficient to cover costs of administration and staffing in addition to such other amounts as determined by the department. The deferred compensation principal account shall be used to carry out the purposes of section 314 of this act. All eligible state employees shall be given the opportunity to participate in agreements entered into by the department under section 314 of this act. State agencies shall cooperate with the department in providing employees with the opportunity to participate.
(3) Any county, municipality, or other subdivision of the state may elect to participate in any agreements entered into by the department under section 314 of this act, including the making of payments therefrom to the employees participating in a deferred compensation plan upon their separation from state or other qualifying service. Accordingly, the deferred compensation principal account shall be considered to be a public pension or retirement fund within the meaning of Article XXIX, section 1 of the state Constitution, for the purpose of determining eligible investments and deposits of the moneys therein.
(4) All moneys in the deferred compensation principal account, all property and rights purchased therewith, and all income attributable thereto, shall remain (until made available to the participating employee or other beneficiary) solely the money, property, and rights of the state and participating counties, municipalities, and subdivisions (without being restricted to the provision of benefits under the plan) subject only to the claims of the state's and participating jurisdictions' general creditors. Participating jurisdictions shall each retain property rights separately.
(5) The state investment board, at the request of the employee retirement benefits board as established under section 301 of this act, is authorized to invest moneys in the deferred compensation principal account in accordance with RCW 43.84.150. Except as provided in RCW 43.33A.160, one hundred percent of all earnings from these investments shall accrue directly to the deferred compensation principal account.
(6) The deferred compensation administrative account is hereby created in the state treasury. All expenses of the department pertaining to the deferred compensation plan including staffing and administrative expenses shall be paid out of the deferred compensation administrative account. Any excess of earnings of investments of balances credited to this account over administrative expenses disbursed from this account shall be transferred to the deferred compensation principal account. Any deficiency in the deferred compensation administrative account caused by an excess of administrative expenses disbursed from this account over earnings of investments of balances credited to this account shall be transferred to this account from the deferred compensation principal account.
(7) In addition to the duties specified in this section and section 314 of this act, the department shall administer the salary reduction plan established in RCW 41.04.600 through 41.04.645.
(8) The department shall keep or cause to be kept full and adequate accounts and records of the assets, obligations, transactions, and affairs of any deferred compensation plans created under section 314 of this act and this section.
(9) The department shall file an annual report of the financial condition, transactions, and affairs of the deferred compensation plans under its jurisdiction. A copy of the annual report shall be filed with the speaker of the house of representatives, the president of the senate, the governor, and the state auditor.
(10) Members of the employee retirement benefits board established under section 301 of this act shall be deemed to stand in a fiduciary relationship to the employees participating in the deferred compensation plans created under section 314 of this act and this section and shall discharge the duties of their respective positions in good faith and with that diligence, care, and skill which ordinary prudent persons would exercise under similar circumstances in like positions.
(11) The department may adopt rules necessary to carry out the purposes of section 314 of this act and this section.
Sec. 316. RCW 41.50.030 and 1975-'76 2nd ex.s. c 105 s 5 are each amended to read as follows:
(1) As soon as possible but not more than one hundred and eighty days after March 19, 1976, there is transferred to the department of retirement systems, except as otherwise provided in this chapter, all powers, duties, and functions of:
(((1))) (a) The Washington public employees' retirement system ((and the retirement board thereof));
(((2))) (b) The Washington state teachers' retirement system ((and the board of trustees thereof));
(((3))) (c) The Washington law enforcement officers' and fire fighters' retirement system ((and the retirement board thereof));
(((4))) (d) The Washington state patrol retirement system ((and the retirement board thereof));
(((5))) (e) The Washington judicial retirement system ((and the retirement board thereof)); and
(((6))) (f) The state treasurer with respect to the administration of the judges' retirement fund imposed pursuant to chapter 2.12 RCW.
(2) On the effective date of this act there is transferred to the department all powers, duties, and functions of the deferred compensation committee.
(3) The department shall administer sections 201 through 209 of this act.
Sec. 317. RCW 41.50.050 and 1993 c 61 s 1 are each amended to read as follows:
The director shall:
(1) Have the authority to organize the department into not more than ((three)) four divisions, each headed by an assistant director;
(2) Have free access to all files and records of various funds assigned to the department and inspect and audit the files and records as deemed necessary;
(3) Employ personnel to carry out the general administration of the department;
(4) Submit an annual written report of the activities of the department to the governor and the chairs of the appropriate legislative committees with one copy to the staff of each of the committees, including recommendations for statutory changes the director believes to be desirable;
(5) Adopt such rules and regulations as are necessary to carry out the powers, duties, and functions of the department pursuant to the provisions of chapter 34.05 RCW.
Sec. 318. RCW 41.50.060 and 1975-'76 2nd ex.s. c 105 s 8 are each amended to read as follows:
The director may delegate the performance of such powers, duties, and functions, other than those relating to rule making, to employees of the department, but the director shall remain and be responsible for the official acts of the employees of the department.
The director shall be responsible for the public employees' retirement system, the teachers' retirement system, the judicial retirement system, the law enforcement officers' and fire fighters' retirement system, and the Washington state patrol retirement system. The director shall also be responsible for the deferred compensation program.
Sec. 319. RCW 41.54.030 and 1990 c 192 s 2 are each amended to read as follows:
(1) A dual member(('s)) may combine service in all systems ((may be combined)) for the ((sole)) purpose of:
(a) Determining the member's eligibility to receive a service retirement allowance; and
(b) Qualifying for a benefit under section 115(3) of this act.
(2) A dual member who is eligible to retire under any system may elect to retire from all the member's systems and to receive service retirement allowances calculated as provided in this section. Each system shall calculate the allowance using its own criteria except that the member shall be allowed to substitute the member's base salary from any system as the compensation used in calculating the allowance.
(3) The service retirement allowances from a system which, but for this section, would not be allowed to be paid at this date based on the dual member's age shall be either actuarially adjusted from the earliest age upon which the combined service would have made such dual member eligible in that system, or the dual member may choose to defer the benefit until fully eligible.
NEW SECTION. Sec. 320. A new section is added to chapter 41.54 RCW to read as follows:
Any dual member who elects to transfer under section 303 of this act may subject to the provisions of this chapter:
(1) Similarly transfer any other prior plan II service credit to plan III of the same retirement system; or
(2) Combine service credit in all systems for purposes of vesting pursuant to section 303(1)(c) of this act.
NEW SECTION. Sec. 321. A new section is added to chapter 43.33A RCW to read as follows:
Pursuant to section 302 of this act, the state investment board, at the request of the employee retirement benefits board, is authorized to offer investment options for self-directed investment under plan III.
Sec. 322. RCW 41.04.440 and 1984 c 227 s 1 are each amended to read as follows:
(1) The sole purpose of RCW 41.04.445 and 41.04.450 is to allow the members of the retirement systems created in chapters 2.10, 2.12, 41.26, 41.32, 41.40, 41.-- (sections 201 through 209 of this act), and 43.43 RCW to enjoy the tax deferral benefits allowed under 26 USC 414(h). This act does not alter in any manner the provisions of RCW 41.26.450((, 41.32.775)) and 41.40.650 which require that the member contribution rates shall be set so as to provide fifty percent of the cost((s)) of the respective retirement plans.
(2) Should the legislature revoke any benefit allowed under ((this act)) 26 U.S.C. 414(h), no affected employee shall be entitled thereafter to receive such benefit as a matter of contractual right.
Sec. 323. RCW 41.04.445 and 1992 c 212 s 15 are each amended to read as follows:
(1) This section applies to all members who are:
(a) Judges under the retirement system established under chapter 2.10, 2.12, or 2.14 RCW;
(b) Employees of the state under the retirement system established by chapter 41.32, 41.40, or 43.43 RCW;
(c) Employees of school districts under the retirement system established by chapter 41.32 or 41.40 RCW, except for substitute teachers as defined by RCW 41.32.010;
(d) Employees of educational service districts under the retirement system established by chapter 41.32 or 41.40 RCW; or
(e) Employees of community college districts under the retirement system established by chapter 41.32 or 41.40 RCW.
(2) Only for compensation earned after the effective date of the implementation of this section and as provided by section 414(h) of the federal internal revenue code, the employer of all the members specified in subsection (1) of this section shall pick up only those member contributions as required under:
(a) RCW 2.10.090(1);
(b) RCW 2.12.060;
(c) RCW 2.14.090;
(d) RCW 41.32.263;
(e) RCW 41.32.350;
(f) ((RCW 41.32.775;
(g))) RCW 41.40.330 (1) and (3);
(((h))) (g) RCW 41.40.650; ((and
(i))) (h) Section 207 of this act;
(i) RCW 43.43.300; and
(j) Section 204 of this act.
(3) Only for the purposes of federal income taxation, the gross income of the member shall be reduced by the amount of the contribution to the respective retirement system picked up by the employer.
(4) All member contributions to the respective retirement system picked up by the employer as provided by this section, plus the accrued interest earned thereon, shall be paid to the member upon the withdrawal of funds or lump-sum payment of accumulated contributions as provided under the provisions of the retirement systems.
(5) At least forty-five days prior to implementing this section, the employer shall provide:
(a) A complete explanation of the effects of this section to all members; and
(b) Notification of such implementation to the director of the department of retirement systems.
Sec. 324. RCW 41.04.450 and 1985 c 13 s 3 are each amended to read as follows:
(1) Employers of those members under chapters 41.26 ((and)), 41.40, and 41.-- (sections 201 through 209 of this act) RCW who are not specified in RCW 41.04.445 may choose to implement the employer pick up of all member contributions without exception under RCW 41.26.080(1), 41.26.450, 41.40.330(1), ((and)) 41.40.650, and chapter 41.-- RCW (sections 201 through 209 of this act). If the employer does so choose, the employer and members shall be subject to the conditions and limitations of RCW 41.04.445 (3), (4), and (5) and RCW 41.04.455.
(2) An employer exercising the option under this section may later choose to withdraw from and/or reestablish the employer pick up of member contributions only once in a calendar year following forty-five days prior notice to the director of the department of retirement systems.
NEW SECTION. Sec. 325. The benefits provided pursuant to this act are not provided to employees as a matter of contractual right prior to the effective date of this act. The legislature retains the right to alter or abolish these benefits at any time prior to the date this act becomes effective.
NEW SECTION. Sec. 326. The following acts or parts of acts are each repealed:
(1) RCW 41.04.250 and 1981 c 256 s 2, 1975 1st ex.s. c 274 s 2, 1973 1st ex.s. c 99 s 1, 1972 ex.s. c 19 s 1, & 1971 ex.s. c 264 s 1;
(2) RCW 41.04.255 and 1991 c 249 s 2 & 1982 c 107 s 2;
(3) RCW 41.04.260 and 1993 c 34 s 2 & 1991 sp.s. c 13 s 101;
(4) RCW 41.32.775 and 1990 c 274 s 9, 1989 c 273 s 19, 1986 c 268 s 2, 1984 c 184 s 11, & 1977 ex.s. c 293 s 6;
(5) RCW 41.45.040 and 1993 c 519 s 18 & 1989 c 273 s 4;
(6) RCW 41.45.0601 and 1993 c 519 s 20 & 1992 c 239 s 1;
(7) RCW 41.45.901 and 1989 c 273 s 33;
(8) RCW 41.50.032 and 1984 c 184 s 15 & 1982 c 163 s 9; and
(9) RCW 41.50.250 and 1991 c 35 s 72, 1989 c 273 s 21, 1981 c 3 s 32, 1969 c 128 s 4, 1963 c 174 s 6, 1955 c 220 s 2, 1953 c 200 s 3, 1949 c 240 s 5, & 1947 c 274 s 9.
NEW SECTION. Sec. 327. This act shall take effect July 1, 1996.
NEW SECTION. Sec. 328. Part headings and subchapter headings as used in this act constitute no part of the law."
On page 1, line 1 of the title, after "systems;" strike the remainder of the title and insert "amending RCW 41.32.005, 41.32.032, 41.45.010, 41.45.020, 41.45.030, 41.45.050, 41.45.060, 41.45.070, 41.50.075, 41.50.110, 41.50.030, 41.50.050, 41.50.060, 41.54.030, 41.04.440, 41.04.445, and 41.04.450; reenacting and amending RCW 41.32.010; adding new sections to chapter 41.32 RCW; adding new sections to chapter 41.50 RCW; adding a new section to chapter 41.45 RCW; adding a new section to chapter 41.54 RCW; adding a new section to chapter 43.33A RCW; adding a new chapter to Title 41 RCW; creating new sections; repealing RCW 41.04.250, 41.04.255, 41.04.260, 41.32.775, 41.45.040, 41.45.0601, 41.45.901, 41.50.032, and 41.50.250; and providing an effective date."
and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
MOTION
Representative Carlson moved that the House concur in the Senate amendments to Engrossed Substitute House Bill No. 1206 and pass the bill as amended by the Senate.
Representatives Carlson and Valle spoke in favor of the motion and it was carried.
FINAL PASSAGE OF HOUSE BILL AS SENATE AMENDED
The Speaker (Representative Horn presiding) stated the question before the House to be final passage of Engrossed Substitute House Bill No. 1206 as amended by the Senate.
ROLL CALL
The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 1206 as amended by the Senate, and the bill passed the House by the following vote: Yeas - 92, Nays - 1, Absent - 0, Excused - 5.
Voting yea: Representatives Appelwick, Backlund, Ballasiotes, Basich, Beeksma, Benton, Blanton, Boldt, Brown, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chappell, Chopp, Clements, Cody, Cole, Conway, Cooke, Costa, Crouse, Dellwo, Delvin, Dickerson, Dyer, Ebersole, Elliot, Fisher, G., Fisher, R., Fuhrman, Grant, Hankins, Hargrove, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Jacobsen, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mason, Mastin, McMahan, McMorris, Mielke, Mitchell, Morris, Mulliken, Ogden, Patterson, Pelesky, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Romero, Rust, Schmidt, D., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Skinner, Smith, Sterk, Stevens, Talcott, Thibaudeau, Thomas, B., Thomas, L., Thompson, Tokuda, Valle, Van Luven, Veloria, Wolfe and Mr. Speaker - 92.
Voting nay: Representative Goldsmith - 1.
Excused: Representatives Foreman, Robertson, Schmidt, K., Silver and Sommers - 5.
Engrossed Substitute House Bill No. 1206, as amended by the Senate, having received the constitutional majority, was declared passed.
SENATE AMENDMENTS TO HOUSE BILL
April 5, 1995
Mr. Speaker:
The Senate has passed HOUSE BILL NO. 1224 with the following amendments:
Strike everything after the enacting clause and insert the following:
"NEW SECTION. Sec. 1. A new section is added to chapter 28A.630 RCW to read as follows:
(1) The state board of education, where appropriate, or the superintendent of public instruction, where appropriate, may grant waivers to districts from the provisions of statutes or rules relating to: The length of the school year; student-to-teacher ratios; and other administrative rules that in the opinion of the state board of education or the opinion of the superintendent of public instruction may need to be waived in order for a district to implement a plan for restructuring its educational program or the educational program of individual schools within the district.
(2) School districts may use the application process in RCW 28A.305.140 or 28A.300.138 to apply for the waivers under subsection (1) of this section.
(3) The joint select committee on education restructuring shall study which waivers of state laws or rules are necessary for school districts to implement education restructuring. The committee shall study whether the waivers are used to implement specific essential academic learning requirements and student learning goals. The committee shall study the availability of waivers under the schools for the twenty-first century program created by chapter 525, Laws of 1987, and the use of those waivers by schools participating in that program. The committee shall also study the use of waivers authorized under RCW 28A.305.140. The committee shall report its findings to the legislature by December 1, 1997."
On page 1, line 1 of the title, after "waivers;" strike the remainder of the title and insert "and adding a new section to chapter 28A.630 RCW."
and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
MOTION
Representative Brumsickle moved that the House concur in the Senate amendments to House Bill No. 1224 and pass the bill as amended by the Senate.
Representatives Brumsickle and Cole spoke in favor of the motion and it was carried.
FINAL PASSAGE OF HOUSE BILL AS SENATE AMENDED
The Speaker (Representative Horn presiding) stated the question before the House to be final passage of House Bill No. 1224 as amended by the Senate.
ROLL CALL
The Clerk called the roll on the final passage of House Bill No. 1224 as amended by the Senate, and the bill passed the House by the following vote: Yeas - 93, Nays - 0, Absent - 0, Excused - 5.
Voting yea: Representatives Appelwick, Backlund, Ballasiotes, Basich, Beeksma, Benton, Blanton, Boldt, Brown, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chappell, Chopp, Clements, Cody, Cole, Conway, Cooke, Costa, Crouse, Dellwo, Delvin, Dickerson, Dyer, Ebersole, Elliot, Fisher, G., Fisher, R., Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Jacobsen, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mason, Mastin, McMahan, McMorris, Mielke, Mitchell, Morris, Mulliken, Ogden, Patterson, Pelesky, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Romero, Rust, Schmidt, D., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Skinner, Smith, Sterk, Stevens, Talcott, Thibaudeau, Thomas, B., Thomas, L., Thompson, Tokuda, Valle, Van Luven, Veloria, Wolfe and Mr. Speaker - 93.
Excused: Representatives Foreman, Robertson, Schmidt, K., Silver and Sommers - 5.
House Bill No. 1224, as amended by the Senate, having received the constitutional majority, was declared passed.
SENATE AMENDMENTS TO HOUSE BILL
April 7, 1995
Mr. Speaker:
The Senate has passed HOUSE BILL NO. 1249 with the following amendments:
On page 5, line 1, strike "December 1, ((1998)) 1999" and insert "((December 1, 1998)) June 30, 1999"
On page 6, line 12, strike "September 1, ((1998)) 1999" and insert "((September 1, 1998)) June 30, 1999"
On page 6, beginning on line 13, strike "expire September 1, 1999, and insert "expire June 30, 1999"
and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
MOTION
Representative Brumsickle moved that the House concur in the Senate amendments to House Bill No. 1249 and pass the bill as amended by the Senate.
Representatives Chandler and Cole spoke in favor of the motion and it was carried.
FINAL PASSAGE OF HOUSE BILL AS SENATE AMENDED
The Speaker (Representative Horn presiding) stated the question before the House to be final passage of House Bill No. 1249 as amended by the Senate.
Representative Brumsickle spoke in favor of passage of the bill.
ROLL CALL
The Clerk called the roll on the final passage of House Bill No. 1249 as amended by the Senate, and the bill passed the House by the following vote: Yeas - 92, Nays - 0, Absent - 1, Excused - 5.
Voting yea: Representatives Appelwick, Backlund, Ballasiotes, Basich, Benton, Blanton, Boldt, Brown, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chappell, Chopp, Clements, Cody, Cole, Conway, Cooke, Costa, Crouse, Dellwo, Delvin, Dickerson, Dyer, Ebersole, Elliot, Fisher, G., Fisher, R., Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Jacobsen, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mason, Mastin, McMahan, McMorris, Mielke, Mitchell, Morris, Mulliken, Ogden, Patterson, Pelesky, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Romero, Rust, Schmidt, D., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Skinner, Smith, Sterk, Stevens, Talcott, Thibaudeau, Thomas, B., Thomas, L., Thompson, Tokuda, Valle, Van Luven, Veloria, Wolfe and Mr. Speaker - 92.
Absent: Representative Beeksma - 1.
Excused: Representatives Foreman, Robertson, Schmidt, K., Silver and Sommers - 5.
House Bill No. 1249, as amended by the Senate, having received the constitutional majority, was declared passed.
SENATE AMENDMENTS TO HOUSE BILL
April 6, 1995
Mr. Speaker:
The Senate has passed HOUSE BILL NO. 1282, with the following amendments:
Strike everything after the enacting clause and insert the following:
"Sec. 1. RCW 77.12.265 and 1987 c 506 s 35 are each amended to read as follows:
The owner, the owner's immediate family member, the owner's documented employee, or tenant of real property may trap or kill on that property, without the licenses required under RCW 77.32.010, wild animals or wild birds, other than an endangered species, that ((is)) are damaging crops, domestic animals, fowl, or other property. Except in emergency situations, deer, elk, and protected wildlife shall not be killed without a permit issued and conditioned by the director. The director may delegate this authority.
For the purposes of this section, "emergency" means an unforeseen circumstance beyond the control of the landowner or tenant that presents a real and immediate threat to crops, domestic animals, fowl, or other property.
Alternatively, when sufficient time for the issuance of a permit by the director is not available, verbal permission may be given by the appropriate department regional administrator to owners or tenants of real property to trap or kill on that property any deer, elk, or protected wildlife which is damaging crops, domestic animals, fowl, or other property. The regional administrator may delegate, in writing, a member of the regional staff to give the required permission in these emergency situations. Nothing in this section authorizes in any situation the trapping, hunting, or killing of an endangered species.
Except for coyotes and Columbian ground squirrels, wildlife trapped or killed under this section remain((s)) the property of the state, and the person trapping or killing the wildlife shall notify the department immediately. The director shall dispose of wildlife so taken within three working days of receiving such a notification.
If the department receives recurring complaints regarding property being damaged as described in this section from the owner or tenant of real property, or receives such complaints from several such owners or tenants in a locale, the commission shall consider conducting a special hunt or special hunts to reduce the potential for such damage.
For purposes of this section, "crop" means an agricultural or horticultural product growing or harvested and includes wild shrubs and range land vegetation on privately owned cattle ranching lands. On such lands, the land owner or lessee may declare an emergency when the department has not responded within forty-eight hours after having been contacted by the land owner or lessee regarding crop damage by wild animals or wild birds. However, the department shall not allow claims for damage to wild shrubs or range land vegetation on such lands.
Deer and elk shall not be killed under the authority of this section on privately owned cattle ranching lands that were closed to public hunting during the previous hunting season, except for land closures which are coordinated with the department to protect property and livestock.
The department shall work closely with landowners and tenants suffering game damage problems to control damage without killing the animals when practical, to increase the harvest of damage-causing animals in hunting seasons, or to kill the animals when no other practical means of damage control is feasible.
For the purposes of this section, "immediate family member" means spouse, brother, sister, grandparent, parent, child, or grandchild."
On page 1, line 2 of the title, after "crops;" strike the remainder of the title and insert "and amending RCW 77.12.265."
and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
MOTION
Representative Fuhrman moved that the House concur in the Senate amendments to House Bill No. 1282 and pass the bill as amended by the Senate.
Representatives Fuhrman and Basich spoke in favor of the motion and it was carried.
FINAL PASSAGE OF HOUSE BILL AS SENATE AMENDED
The Speaker (Representative Horn presiding) stated the question before the House to be final passage of House Bill No. 1282 as amended by the Senate.
Representative Fuhrman spoke in favor of passage of the bill.
ROLL CALL
The Clerk called the roll on the final passage of House Bill No. 1282 as amended by the Senate, and the bill passed the House by the following vote: Yeas - 81, Nays - 11, Absent - 1, Excused - 5.
Voting yea: Representatives Appelwick, Backlund, Ballasiotes, Basich, Beeksma, Blanton, Brown, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chappell, Clements, Cody, Conway, Cooke, Costa, Crouse, Delvin, Dickerson, Dyer, Ebersole, Elliot, Fisher, G., Fisher, R., Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Jacobsen, Johnson, Koster, Kremen, Lambert, Lisk, Mastin, McMahan, McMorris, Mielke, Mitchell, Morris, Mulliken, Ogden, Pelesky, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Schmidt, D., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Skinner, Smith, Sterk, Stevens, Talcott, Thomas, B., Thomas, L., Thompson, Tokuda, Valle, Van Luven, Veloria and Mr. Speaker - 81.
Voting nay: Representatives Benton, Boldt, Chopp, Cole, Dellwo, Kessler, Patterson, Romero, Rust, Thibaudeau and Wolfe - 11.
Absent: Representative Mason - 1.
Excused: Representatives Foreman, Robertson, Schmidt, K., Silver and Sommers - 5.
House Bill No. 1282, as amended by the Senate, having received the constitutional majority, was declared passed.
SENATE AMENDMENTS TO HOUSE BILL
April 10, 1995
Mr. Speaker:
The Senate has passed SUBSTITUTE HOUSE BILL NO. 1342 with the following amendments:
Strike everything after the enacting clause and insert the following:
"NEW SECTION. Sec. 1. The legislature finds that during the past fourteen years, the Washington state parks and recreation commission has endured a steady erosion of general fund operating support, which has caused park closures, staff reductions, and growing backlog of deferred maintenance projects. The legislature also finds that the growth of parks revenue has been constrained by staff limitations and by transfers of that revenue into the general fund.
The legislature intends to reverse the decline in operating support to its state parks, stabilize the system's level of general fund support, and inspire system employees and park visitors to enhance these irreplaceable resources and ensure their continuing availability to current and future state citizens and visitors. To achieve these goals, the legislature intends to dedicate park revenues to park operations, developing and renovating park facilities, undertaking deferred maintenance, and improving park stewardship. The legislature clearly intends that such revenues shall complement, not supplant, future general fund support.
Sec. 2. RCW 43.51.047 and 1984 c 82 s 3 are each amended to read as follows:
Only timber which qualifies for cutting or removal under RCW 43.51.045(2) may be sold. Timber shall be sold only when surplus to the needs of the park.
Net revenue derived from timber sales shall be deposited in the ((trust land)) parks renewal and stewardship account created in section 7 of this act.
Sec. 3. RCW 43.51.060 and 1993 c 156 s 1 are each amended to read as follows:
The commission may:
(1) Make rules and regulations for the proper administration of its duties;
(2) Accept any grants of funds made with or without a matching requirement by the United States, or any agency thereof, for purposes in keeping with the purposes of this chapter; accept gifts, bequests, devises and endowments for purposes in keeping with such purposes; enter into cooperative agreements with and provide for private nonprofit groups to use state park property and facilities to raise money to contribute gifts, grants, and support to the commission for the purposes of this chapter. The commission may assist the nonprofit group in a cooperative effort by providing necessary agency personnel and services, if available. However, none of the moneys raised may inure to the benefit of the nonprofit group, except in furtherance of its purposes to benefit the commission as provided in this chapter. The agency and the private nonprofit group shall agree on the nature of any project to be supported by such gift or grant prior to the use of any agency property or facilities for raising money. Any such gifts may be in the form of recreational facilities developed or built in part or in whole for public use on agency property, provided that the facility is consistent with the purposes of the agency;
(3) Require certification by the commission of all parks and recreation workers employed in state aided or state controlled programs;
(4) Act jointly, when advisable, with the United States, any other state agencies, institutions, departments, boards, or commissions in order to carry out the objectives and responsibilities of this chapter;
(5) Grant franchises and easements for any legitimate purpose on parks or parkways, for such terms and subject to such conditions and considerations as the commission shall specify;
(6) Charge such fees for services, utilities, and use of facilities as the commission shall deem proper((. All fees received by the commission shall be deposited with the state treasurer in the state general fund));
(7) Enter into agreements whereby individuals or companies may rent undeveloped parks or parkway land for grazing, agricultural, or mineral development purposes upon such terms and conditions as the commission shall deem proper, for a term not to exceed ten years;
(8) Determine the qualifications of and employ a director of parks and recreation who shall receive a salary as fixed by the governor in accordance with the provisions of RCW 43.03.040, and upon his recommendation, a supervisor of recreation, and determine the qualifications and salary of and employ such other persons as may be needed to carry out the provisions hereof; and
(9) Without being limited to the powers hereinbefore enumerated, the commission shall have such other powers as in the judgment of a majority of its members are deemed necessary to effectuate the purposes of this chapter: PROVIDED, That the commission shall not have power to supervise directly any local park or recreation district, and no funds shall be made available for such purpose.
Sec. 4. RCW 43.51.270 and 1992 c 185 s 1 are each amended to read as follows:
(1) The ((board)) department of natural resources and the state parks and recreation commission shall have authority to negotiate a sale to the state parks and recreation commission, for park and outdoor recreation purposes, of ((the)) trust lands ((withdrawn as of August 9, 1971, pursuant to law for park purposes and included within the state parks listed in subsection (2) of this section: PROVIDED, That the sale shall be by contract with a pay-off period of not less than ten years, a price of eleven million twenty-four thousand seven hundred forty dollars or the)) at fair market value((, whichever is higher, for the land value, and interest not to exceed six percent. All fees collected by the commission beginning in the 1973-1975 biennium shall be applied to the purchase price of the trust lands listed in subsection (2) of this section; the acquisition of the property described in subsections (3) and (4) of this section, and all reasonable costs of acquisition, described in subsection (5) of this section; the renovation and redevelopment of state park structures and facilities to extend the original life expectancy or correct damage to the environment of state parks; the maintenance and operation of state parks; and any cost of collection pursuant to appropriations from the trust land purchase account created in RCW 43.51.280. The department of natural resources shall not receive any management fee pursuant to the sale of the trust lands listed in subsections (2) and (4) of this section. Timber on the trust lands which are the subject of subsections (2), (3), and (4) of this section shall continue to be under the management of the department of natural resources until such time as the legislature appropriates funds to the parks and recreation commission for purchase of said timber. The state parks which include trust lands which shall be the subject of this sale pursuant to this section are:
(2)(a) Penrose Point
(b) Kopachuck
(c) Long Beach
(d) Leadbetter Point
(e) Nason Creek
(f) South Whidbey
(g) Blake Island
(h) Rockport
(i) Mt. Pilchuck
(j) Ginkgo
(k) Lewis & Clark
(l) Rainbow Falls
(m) Bogachiel
(n) Sequim Bay
(o) Federation Forest
(p) Moran
(q) Camano Island
(r) Beacon Rock
(s) Bridle Trails
(t) Chief Kamiakin (formerly Kamiak Butte)
(u) Lake Wenatchee
(v) Fields Springs
(w) Sun Lakes
(x) Scenic Beach.
(3) The board of natural resources and the state parks and recreation commission shall negotiate a mutually acceptable transfer for adequate consideration to the state parks and recreation commission to be used for park and recreation purposes:
(a) All the state-owned Heart Lake property, including the timber therein, located in section 36, township 35 north, range 1E, W.M. in Skagit county;
(b) The Moran Park Additions, including the timber thereon, located in sections 16, 17, 19, 26, and 30, township 37 north, range 1W, W.M.;
(c) The Fort Ebey Addition (Partridge Point), including the timber thereon, located in section 36, township 32 north, range 1W, W.M. and section 6, township 31 north, range 1E, W.M.;
(d) The South Whidbey Addition (Classic U), including the timber thereon, located in section 29, township 30 north, range 2E, W.M.; and
(e) The Larrabee Addition, including the timber thereon, located in section 29, township 37 north, range 3E, W.M)).
(((4))) (2) The ((board)) department of natural resources and the state parks and recreation commission shall negotiate a sale to the state parks and recreation commission of the lands and timber thereon identified in the joint study under section 4, chapter 163, Laws of 1985, and commonly referred to as((:
(a) The Packwood trust property, Lewis county — located on the Cowlitz river at Packwood;
(b) The Iron Horse (Bullfrog) trust property — adjoining the John Wayne Pioneer Trail at Iron Horse State Park;
(c) The Soleduck Corridor trust property, Clallam county — on the Soleduck river at Sappho;
(d) The Lake Sammamish (Providence Heights) trust property, King county — adjacent to Hans Jensen Youth Camp area at Lake Sammamish State Park;
(e) The Kinney Point trust property, Jefferson county — on the extreme southern tip of Marrowstone Island;
(f) The Hartstene Island trust property, Mason county — near Fudge Point on the east side of Hartstene Island approximately two miles south of Jarrell Cove State Park;
(g) The Wallace Falls trust property addition, Snohomish county — located adjacent to Wallace Falls State Park;
(h) The Diamond Point trust property, Clallam county — on the Strait of Juan de Fuca; provided, however, to the extent authorized by the commission by its action of December 7, 1990, as now or hereafter amended, the acreage and boundaries of the Diamond Point trust property acquired by the commission may vary from the acreage and boundaries described in the joint study. The commission may not authorize acquisition of any portion of the Diamond Point trust property by a private party prior to approval by the Clallam county board of commissioners of a preliminary master site plan for a resort development on the property;
(i) The Twin Falls trust property addition, King county — three parcels adjacent to the Twin Falls natural area, King county;
(j) The Skating Lake trust property, Pacific county — one and one-half miles north of Ocean Park and two miles south of Leadbetter State Park on the Long Beach Peninsula;
(k) The Kopachuck trust property addition, Pierce county — adjoining Kopachuck State Park;
(l))) the Point Lawrence trust property, San Juan county — on the extreme east point of Orcas Island((;
(m) The Huckleberry Island trust property, Skagit county — between Guemes Island and Saddlebag Island State Park;
(n) The Steamboat Rock (Osborn Bay) trust property, Grant county — southwest of Electric City on Osborn Bay;
(o) The Lord Hill trust property, Snohomish county — west of Monroe;
(p) The Larrabee trust property addition, Whatcom county — northeast of Larrabee State Park and Chuckanut Mountain;
(q) The Beacon Rock trust property, Skamania county — at Beacon Rock State Park;
(r) The Loomis Lake trust property, Pacific county — on the east shore of Loomis Lake and Lost Lake;
(s) The Lake Easton trust property addition, Kittitas county — one-quarter mile west of Lake Easton State Park near the town of Easton;
(t) The Fields Spring trust property addition, Asotin county — adjacent to the west and north boundaries of Fields Spring State Park;
(u) The Hoypus Hill trust property, Island county — south of the Hoypus Point natural forest area at Deception Pass State Park;
(v) The Cascade Island trust property, Skagit county — on the Cascade river about one and one-half miles east of Marblemount off of the South Cascade county road and ten and one-half miles east of Rockport State Park.
Payment for the property described in this subsection shall be derived from the trust land purchase account established pursuant to RCW 43.51.280)). Timber conservation and management practices provided for in RCW 43.51.045 and 43.51.395 shall govern the management of land and timber transferred under this subsection as of the effective date of the transfer, upon payment for the property, and nothing in this chapter shall be construed as restricting or otherwise modifying the department of natural resources' management, control, or use of such land and timber until such date.
(((5) The funds from the trust land purchase account designated for the acquisition of the property described in subsections (3) and (4) of this section, and the reasonable costs of acquisition, shall be deposited in the park land trust revolving fund, hereby created, to be utilized by the department of natural resources for the exclusive purpose of acquiring real property as a replacement for the property described in subsections (3) and (4) of this section to maintain the land base of the several trusts and for the reimbursement of the department of natural resources for all reasonable costs, to include, but not exclusively, the appraisal and cruising of the timber on the property for the acquisition of the property described in subsections (3) and (4) of this section. Disbursements from the park land trust revolving fund to acquire replacement property, and pay for all reasonable costs of acquisition, for the property described in subsections (3) and (4) of this section shall be on the authorization of the board of natural resources. In order to maintain an effective expenditure and revenue control, the park land trust revolving fund shall be subject in all respects to chapter 43.88 RCW, but no appropriation shall be required to permit expenditures and payment of obligations from the fund. The state treasurer shall be custodian of the revolving fund.
The department of natural resources shall pay all reasonable costs, to include, but not exclusively, the appraisal and cruising of the timber on the property for the acquisition of the property described in subsection (3) of this section from funds provided in the trust land purchase account. Any agreement for the transfer of the property described in subsection (3) of this section shall not have an interest rate exceeding ten percent.
The parks and recreation commission is authorized to accept, receive, disburse, and administer grants or funds or gifts from any source including private individuals, public entities, and the federal government to supplement the funds from the trust land purchase account for the purchase of the property described in subsection (3) of this section.))
NEW SECTION. Sec. 5. A new section is added to chapter 43.85 RCW to read as follows:
The park land trust revolving fund is to be utilized by the department of natural resources for the exclusive purpose of acquiring real property, including all reasonable costs associated with these acquisitions, as a replacement for the property transferred to the state parks and recreation commission or as directed by the legislature in order to maintain the land base of the affected trusts. Proceeds from transfers of real property to the state parks and recreation commission or other proceeds identified from transfers of real property as directed by the legislature shall be deposited in this fund. Disbursement from the park land trust revolving fund to acquire replacement property shall be on the authorization of the department of natural resources. In order to maintain an effective expenditure and revenue control, the park land trust revolving fund is subject in all respects to chapter 43.88 RCW, but no appropriation is required to permit expenditures and payment of obligations from the fund.
NEW SECTION. Sec. 6. RCW 43.51.280 and 1991 sp.s. c 16 s 922, 1991 sp.s. c 13 s 4, & 1987 c 466 s 2 are each repealed.
NEW SECTION. Sec. 7. A new section is added to chapter 43.51 RCW to read as follows:
The state parks renewal and stewardship account is created in the state treasury. Except as otherwise provided in this chapter, all receipts from user fees, concessions, leases, and other state park-based activities shall be deposited into the account. Expenditures from the account may be used for operating state parks, developing and renovating park facilities, undertaking deferred maintenance, enhancing park stewardship, and other state park purposes. Expenditures from the account may be made only after appropriation by the legislature.
NEW SECTION. Sec. 8. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1995.
NEW SECTION. Sec. 9. 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."
On page 1, line 1 of the title, after "commission;" strike the remainder of title and insert "amending RCW 43.51.047, 43.51.060, and 43.51.270; adding a new section to chapter 43.85 RCW; adding a new section to chapter 43.51 RCW; creating a new section; repealing RCW 43.51.280; providing an effective date; and declaring an emergency."
and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
MOTION
Representative Fuhrman moved that the House concur in the Senate amendments to Substitute House Bill No. 1342 as amended by the Senate.
Representatives Fuhrman and Regala spoke in favor of the motion and it was carried.
FINAL PASSAGE OF HOUSE BILL AS SENATE AMENDED
The Speaker (Representative Horn presiding) stated the question before the House to be final passage of Substitute House Bill No. 1342 as amended by the Senate.
Representative Fuhrman spoke in favor of passage of the bill.
ROLL CALL
The Clerk called the roll on the final passage of Substitute House Bill No. 1342 as amended by the Senate, and the bill passed the House by the following vote: Yeas - 93, Nays - 0, Absent - 0, Excused - 5.
Voting yea: Representatives Appelwick, Backlund, Ballasiotes, Basich, Beeksma, Benton, Blanton, Boldt, Brown, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chappell, Chopp, Clements, Cody, Cole, Conway, Cooke, Costa, Crouse, Dellwo, Delvin, Dickerson, Dyer, Ebersole, Elliot, Fisher, G., Fisher, R., Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Jacobsen, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mason, Mastin, McMahan, McMorris, Mielke, Mitchell, Morris, Mulliken, Ogden, Patterson, Pelesky, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Romero, Rust, Schmidt, D., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Skinner, Smith, Sterk, Stevens, Talcott, Thibaudeau, Thomas, B., Thomas, L., Thompson, Tokuda, Valle, Van Luven, Veloria, Wolfe and Mr. Speaker - 93.
Excused: Representatives Foreman, Robertson, Schmidt, K., Silver and Sommers - 5.
Substitute House Bill No. 1342, as amended by the Senate, having received the constitutional majority, was declared passed.
The Speaker (Representative Horn presiding) declared the House to be at ease.
The Speaker (Representative Horn presiding) called the House to order.
SENATE AMENDMENTS TO HOUSE BILL
April 5, 1995
Mr. Speaker:
The Senate has passed SUBSTITUTE HOUSE BILL NO. 1348, with the following amendments:
Strike everything after the enacting clause and insert the following:
"Sec. 1. RCW 18.44.010 and 1985 c 7 s 47 are each amended to read as follows:
Unless the context otherwise requires terms used in this chapter shall have the following meanings:
(1) "Department" means the department of ((licensing)) financial institutions.
(2) "Director" means the director of ((licensing)) financial institutions, or his or her duly authorized representative.
(3) "Escrow" means any transaction wherein any person or persons, for the purpose of effecting and closing the sale, purchase, exchange, transfer, encumbrance, or lease of real or personal property to another person or persons, delivers any written instrument, money, evidence of title to real or personal property, or other thing of value to a third person to be held by such third person until the happening of a specified event or the performance of a prescribed condition or conditions, when it is then to be delivered by such third person, in compliance with instructions under which he is to act, to a grantee, grantor, promisee, promisor, obligee, obligor, lessee, lessor, bailee, bailor, or any agent or employee thereof.
(4) "Escrow agent" means any sole proprietorship, firm, association, partnership, or corporation engaged in the business of performing for compensation the duties of the third person referred to in RCW 18.44.010(3) above.
(5) "Certificated escrow agent" means any sole proprietorship, firm, association, partnership, or corporation holding a certificate of registration as an escrow agent under the provisions of this chapter.
(6) "Person" unless a different meaning appears from the context, includes an individual, a firm, association, partnership or corporation, or the plural thereof, whether resident, nonresident, citizen or not.
(7) "Escrow officer" means any natural person handling escrow transactions and licensed as such by the director.
(8) "Escrow commission" means the escrow commission of the state of Washington created by RCW 18.44.208.
(9) "Controlling person" is any person who owns or controls ten percent or more of the beneficial ownership of any escrow agent, regardless of the form of business organization employed and regardless of whether such interest stands in such person's true name or in the name of a nominee.
Sec. 2. RCW 18.44.080 and 1985 c 340 s 1 are each amended to read as follows:
The director shall charge and collect the following fees:
(1) For filing an original or a renewal application for registration as an escrow agent, annual fees for the first office or location and for each additional office or location.
(2) For filing an application for a change of address, for each certificate of registration and for each escrow officer license being so changed.
(3) For filing an application for a duplicate of a certificate of registration or of an escrow officer license lost, stolen, destroyed, or for replacement.
(4) For providing administrative support to the escrow commission.
All fees under this chapter shall be set by rule by the director ((in accordance with RCW 43.24.086)). In fixing these fees, the director shall set the fees at a sufficient level to defray the costs of administering this chapter.
All fees received by the director under this chapter shall be paid ((by him)) into the state treasury to the credit of the ((general fund)) banking examination fund.
Sec. 3. RCW 18.44.208 and 1985 c 340 s 3 are each amended to read as follows:
There is established an escrow commission of the state of Washington, to consist of the director of ((licensing)) financial institutions or his or her designee as chairman, and five other members who shall act as advisors to the director as to the needs of the escrow profession, including but not limited to the design and conduct of tests to be administered to applicants for escrow licenses, the schedule of license fees to be applied to the escrow licensees, educational programs, audits and investigations of the escrow profession designed to protect the consumer, and such other matters determined appropriate. ((Such members shall be appointed by the governor)) The director is hereby empowered to and shall appoint the other members, each of whom shall have been a resident of this state for at least five years and shall have at least five years experience in the practice of escrow as an escrow agent or as a person in responsible charge of escrow transactions.
The members of the first commission shall serve for the following terms: One member for one year, one member for two years, one member for three years, one member for four years, and one member for five years, from the date of their appointment, or until their successors are duly appointed and qualified. Every member of the commission shall receive a certificate of appointment from the ((governor)) director and before beginning the member's term of office shall file with the secretary of state a written oath or affirmation for the faithful discharge of the member's official duties. On the expiration of the term of each member, the ((governor)) director shall appoint a successor to serve for a term of five years or until the member's successor has been appointed and qualified.
The ((governor)) director may remove any member of the commission for cause. Vacancies in the commission for any reason shall be filled by appointment for the unexpired term.
Members shall be compensated in accordance with RCW 43.03.240, and shall be reimbursed for their travel expenses incurred in carrying out the provisions of this chapter in accordance with RCW 43.03.050 and 43.03.060.
Sec. 4. RCW 18.44.290 and 1977 ex.s. c 156 s 22 are each amended to read as follows:
Any person desiring to be an escrow officer shall meet the requirements of RCW 18.44.220 as provided in this chapter. The applicant shall make application endorsed by a certificated escrow agent to the director on a form to be prescribed and furnished by the director. Such application must be received by the director within one year of passing the escrow officer examination. With this application the applicant shall:
(1) Pay a license fee as set forth ((in this chapter)) by rule; and
(2) Furnish such proof as the director may require concerning his or her honesty, truthfulness, good reputation, and identity, including but not limited to fingerprints.
Sec. 5. RCW 18.44.380 and 1987 c 471 s 10 are each amended to read as follows:
A request for a waiver of the required errors and omissions policy may be accomplished under the statute by submitting to the director an affidavit that substantially addresses the following:
REQUEST FOR WAIVER OF
ERRORS AND OMISSIONS POLICY
I, . . . . . ., residing at . . . . . ., City of . . . . . ., County of . . . . . ., State of Washington, declare the following:
(1) The state escrow commission has determined that an errors and omissions policy is not reasonably available to a substantial number of licensed escrow officers; and
(2) Purchasing an errors and omissions policy is cost-prohibitive at this time; and
(3) I have not engaged in any conduct that resulted in the termination of my escrow certificate; and
(4) I have not paid, directly or through an errors and omissions policy, claims in excess of ten thousand dollars, exclusive of costs and attorneys' fees, during the calendar year preceding submission of this affidavit; and
(5) I have not paid, directly or through an errors and omissions policy, claims, exclusive of costs and attorneys' fees, totaling in excess of twenty thousand dollars in the three calendar years immediately preceding submission of this affidavit; and
(6) I have not been convicted of a crime involving honesty or moral turpitude during the calendar year preceding submission of this application.
THEREFORE, in consideration of the above, I, . . . . . ., respectfully request that the director of ((licensing)) financial institutions grant this request for a waiver of the requirement that I purchase and maintain an errors and omissions policy covering my activities as an escrow agent licensed by the state of Washington for the period from . . . . . ., 19. . ., to . . . . . ., 19. . .
Submitted this day of . . . . day of . . . . . ., 19. . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(signature)
State of Washington,
ss.
County of ((King)) . . . . . . .
I certify that I know or have satisfactory evidence that . . . . . . . . ., signed this instrument and acknowledged it to be . . . . . . . . . free and voluntary act for the uses and purposes mentioned in the instrument.
Dated. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Signature of
Notary Public. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Seal or stamp) Title. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
My appointment expires. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sec. 6. RCW 43.320.011 and 1993 c 472 s 6 are each amended to read as follows:
(1) All powers, duties, and functions of the department of general administration under Titles 30, 31, 32, 33, and 43 RCW and any other title pertaining to duties relating to banks, savings banks, foreign bank branches, savings and loan associations, credit unions, consumer loan companies, check cashers and sellers, trust companies and departments, and other similar institutions are transferred to the department of financial institutions. All references to the director of general administration, supervisor of banking, or the supervisor of savings and loan associations in the Revised Code of Washington are construed to mean the director of the department of financial institutions when referring to the functions transferred in this section. All references to the department of general administration in the Revised Code of Washington are construed to mean the department of financial institutions when referring to the functions transferred in this subsection.
(2) All powers, duties, and functions of the department of licensing under chapters 18.44, 19.100, 19.110, 21.20, 21.30, and 48.18A RCW and any other statute pertaining to the regulation under the chapters listed in this subsection of escrow agents, securities, franchises, business opportunities, commodities, and any other speculative investments are transferred to the department of financial institutions. All references to the director or department of licensing in the Revised Code of Washington are construed to mean the director or department of financial institutions when referring to the functions transferred in this subsection.
Sec. 7. RCW 43.320.013 and 1993 c 472 s 9 are each amended to read as follows:
All employees classified under chapter 41.06 RCW, the state civil service law, who are employees of the department of general administration or the department of licensing engaged in performing the powers, functions, and duties transferred by RCW 43.320.011, except those under chapter 18.44 RCW, are transferred to the department of financial institutions. All such employees are assigned to the department of financial institutions to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.
Sec. 8. RCW 43.320.060 and 1993 c 472 s 20 are each amended to read as follows:
The director of financial institutions shall appoint, deputize, and employ examiners and such other assistants and personnel as may be necessary to carry on the work of the department of financial institutions.
In the event of the director's absence the director shall have the power to deputize one of the assistants of the director to exercise all the powers and perform all the duties prescribed by law with respect to banks, savings banks, foreign bank branches, savings and loan associations, credit unions, consumer loan companies, check cashers and sellers, trust companies and departments, securities, franchises, business opportunities, commodities, escrow agents, and other similar institutions or areas that are performed by the director so long as the director is absent: PROVIDED, That such deputized assistant shall not have the power to approve or disapprove new charters, licenses, branches, and satellite facilities, unless such action has received the prior written approval of the director. Any person so deputized shall possess the same qualifications as those set out in this section for the director.
Sec. 9. RCW 43.320.110 and 1993 c 472 s 25 are each amended to read as follows:
There is created a local fund known as the "banking examination fund" which shall consist of all moneys received by the department of financial institutions from banks, savings banks, foreign bank branches, savings and loan associations, consumer loan companies, check cashers and sellers, ((and)) trust companies and departments, and escrow agents, and which shall be used for the purchase of supplies and necessary equipment and the payment of salaries, wages, utilities, and other incidental costs required for the proper regulation of these companies. The state treasurer shall be the custodian of the fund. Disbursements from the fund shall be on authorization of the director of financial institutions or the director's designee. In order to maintain an effective expenditure and revenue control, the fund shall be subject in all respects to chapter 43.88 RCW, but no appropriation is required to permit expenditures and payment of obligations from the fund.
NEW SECTION. Sec. 10. 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 shall take effect July 1, 1995."
On page 1, line 1 of the title, after "agents;" strike the remainder of the title and insert "amending RCW 18.44.010, 18.44.080, 18.44.208, 18.44.290, 18.44.380, 43.320.011, 43.320.013, 43.320.060, and 43.320.110; providing an effective date; and declaring an emergency."
and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
MOTION
Representative L. Thomas moved that the House concur in the Senate amendments to Substitute House Bill No. 1348 and pass the bill as amended by the Senate.
Representatives L. Thomas and Wolfe spoke in favor of the motion and it was carried.
FINAL PASSAGE OF HOUSE BILL AS SENATE AMENDED
The Speaker (Representative Horn presiding) stated the question before the House to be final passage of Substitute House Bill No. 1348 as amended by the Senate.
ROLL CALL
The Clerk called the roll on the final passage of Substitute House Bill No. 1348 as amended by the Senate, and the bill passed the House by the following vote: Yeas - 95, Nays - 0, Absent - 0, Excused - 3.
Voting yea: Representatives Appelwick, Backlund, Ballasiotes, Basich, Beeksma, Benton, Blanton, Boldt, Brown, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chappell, Chopp, Clements, Cody, Cole, Conway, Cooke, Costa, Crouse, Dellwo, Delvin, Dickerson, Dyer, Ebersole, Elliot, Fisher, G., Fisher, R., Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Jacobsen, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mason, Mastin, McMahan, McMorris, Mielke, Mitchell, Morris, Mulliken, Ogden, Patterson, Pelesky, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Rust, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Skinner, Smith, Sterk, Stevens, Talcott, Thibaudeau, Thomas, B., Thomas, L., Thompson, Tokuda, Valle, Van Luven, Veloria, Wolfe and Mr. Speaker - 95.
Excused: Representatives Foreman, Silver and Sommers - 3.
Substitute House Bill No. 1348, as amended by the Senate, having received the constitutional majority, was declared passed.
The Speaker (Representative Horn presiding) declared the House to be at ease.
The Speaker called the House to order.
There being no objection, the House reverted to the fourth order of business.
There being no objection, the rules were suspended and House Concurrent Resolution No. 4408 was advanced to second reading.
There being no objection, the House advanced to the sixth order of business.
SECOND READING
HOUSE CONCURRENT RESOLUTION NO. 4408, by Representative Foreman
Extending the cut-off for certain bills.
The resolution was read the second time.
Representative Ebersole moved adoption of the following amendment by Representative Ebersole:
On page 1, line 2, after "ESSB 5386" insert ", SSB 5322,"
On page 1, line 7, after "ESSB 5386" insert ", SSB 5322,"
Representative Ebersole spoke in favor of the adoption of the amendment.
Representative Mielke spoke against the adoption of the amendment.
Representative Grant demanded an electronic roll call vote and the demand was sustained.
ROLL CALL
The Clerk called the roll on the adoption of the amendment, on page 1, line 2, to House Concurrent Resolution No. 4408 and the amendment was not adopted by the following vote: Yeas - 38, Nays - 60, Absent - 0, Excused - 0.
Voting yea: Representatives Appelwick, Basich, Brown, Chappell, Chopp, Cody, Cole, Conway, Costa, Dellwo, Dickerson, Ebersole, Fisher, G., Fisher, R., Grant, Hatfield, Jacobsen, Kessler, Kremen, Mason, Mastin, Morris, Ogden, Patterson, Poulsen, Quall, Regala, Robertson, Romero, Rust, Scott, Sheldon, Sommers, Thibaudeau, Tokuda, Valle, Veloria and Wolfe - 38.
Voting nay: Representatives Backlund, Ballasiotes, Beeksma, Benton, Blanton, Boldt, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Clements, Cooke, Crouse, Delvin, Dyer, Elliot, Foreman, Fuhrman, Goldsmith, Hankins, Hargrove, Hickel, Honeyford, Horn, Huff, Hymes, Johnson, Koster, Lambert, Lisk, McMahan, McMorris, Mielke, Mitchell, Mulliken, Pelesky, Pennington, Radcliff, Reams, Schmidt, D., Schmidt, K., Schoesler, Sehlin, Sheahan, Sherstad, Silver, Skinner, Smith, Sterk, Stevens, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven and Mr. Speaker - 60.
Representative Conway moved adoption of the following amendment by Representative Conway:
On page 1, line 2, after "ESSB 5386" insert ", ESB 5841,"
On page 1, line 7, after "ESSB 5386" insert ", ESB 5841,"
Representative Conway spoke in favor of the adoption of the amendment.
Representative Patterson demanded an electronic roll call vote and the demand was sustained.
Representative Foreman spoke against the adoption of the amendment.
ROLL CALL
The Clerk called the roll on the adoption of the amendment, on page 1, line 2, to House Concurrent Resolution No. 4408 and the amendment was not adopted by the following vote: Yeas - 37, Nays - 61, Absent - 0, Excused - 0.
Voting yea: Representatives Appelwick, Basich, Brown, Chappell, Chopp, Cody, Cole, Conway, Costa, Dellwo, Dickerson, Ebersole, Fisher, G., Fisher, R., Grant, Hatfield, Jacobsen, Kessler, Kremen, Mason, Mastin, Morris, Ogden, Patterson, Poulsen, Quall, Regala, Romero, Rust, Scott, Sheldon, Sommers, Thibaudeau, Tokuda, Valle, Veloria and Wolfe - 37.
Voting nay: Representatives Backlund, Ballasiotes, Beeksma, Benton, Blanton, Boldt, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Clements, Cooke, Crouse, Delvin, Dyer, Elliot, Foreman, Fuhrman, Goldsmith, Hankins, Hargrove, Hickel, Honeyford, Horn, Huff, Hymes, Johnson, Koster, Lambert, Lisk, McMahan, McMorris, Mielke, Mitchell, Mulliken, Pelesky, Pennington, Radcliff, Reams, Robertson, Schmidt, D., Schmidt, K., Schoesler, Sehlin, Sheahan, Sherstad, Silver, Skinner, Smith, Sterk, Stevens, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven and Mr. Speaker - 61.
Representative Appelwick moved adoption of the following amendment by Representative Appelwick:
On page 1, line 2, after "ESSB 5386" insert ", 2SHB 1255,"
On page 1, line 7, after "ESSB 5386" insert ", 2SHB 1255,"
Representatives Appelwick, Ebersole, Conway and Morris spoke in favor of the adoption of the amendment.
Representative Patterson demanded an electronic roll call vote and the demand was sustained.
Representative Foreman spoke against the adoption of the amendment.
ROLL CALL
The Clerk called the roll on the adoption of the amendment, on page 1, line 2, to House Concurrent Resolution No. 4408 and the amendment was not adopted by the following vote: Yeas - 37, Nays - 61, Absent - 0, Excused - 0.
Voting yea: Representatives Appelwick, Basich, Brown, Chappell, Chopp, Cody, Cole, Conway, Costa, Dellwo, Dickerson, Ebersole, Fisher, G., Fisher, R., Grant, Hatfield, Jacobsen, Kessler, Kremen, Mason, Mastin, Morris, Ogden, Patterson, Poulsen, Quall, Regala, Romero, Rust, Scott, Sheldon, Sommers, Thibaudeau, Tokuda, Valle, Veloria and Wolfe - 37.
Voting nay: Representatives Backlund, Ballasiotes, Beeksma, Benton, Blanton, Boldt, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Clements, Cooke, Crouse, Delvin, Dyer, Elliot, Foreman, Fuhrman, Goldsmith, Hankins, Hargrove, Hickel, Honeyford, Horn, Huff, Hymes, Johnson, Koster, Lambert, Lisk, McMahan, McMorris, Mielke, Mitchell, Mulliken, Pelesky, Pennington, Radcliff, Reams, Robertson, Schmidt, D., Schmidt, K., Schoesler, Sehlin, Sheahan, Sherstad, Silver, Skinner, Smith, Sterk, Stevens, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven and Mr. Speaker - 61.
With the consent of the House, amendment number 893 to House Concurrent Resolution No. 4408 was withdrawn.
There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.
Representative Foreman spoke in favor of passage of the resolution.
Representative Brown spoke against passage of the resolution.
The Speaker stated the question before the House to be adoption passage of House Concurrent Resolution No. 4408.
ROLL CALL
The Clerk called the roll on the final adoption of House Concurrent Resolution No. 4408, and the resolution was adopted by the following vote: Yeas - 83, Nays - 15, Absent - 0, Excused - 0.
Voting yea: Representatives Backlund, Ballasiotes, Basich, Beeksma, Benton, Blanton, Boldt, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chappell, Clements, Cody, Cooke, Costa, Crouse, Delvin, Dickerson, Dyer, Elliot, Fisher, G., Foreman, Fuhrman, Goldsmith, Hankins, Hargrove, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Jacobsen, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mason, McMahan, McMorris, Mielke, Mitchell, Morris, Mulliken, Ogden, Pelesky, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Sommers, Sterk, Stevens, Talcott, Thomas, B., Thomas, L., Thompson, Tokuda, Valle, Van Luven, Veloria and Mr. Speaker - 83.
Voting nay: Representatives Appelwick, Brown, Chopp, Cole, Conway, Dellwo, Ebersole, Fisher, R., Grant, Mastin, Patterson, Romero, Rust, Thibaudeau and Wolfe - 15.
House Concurrent Resolution No. 4408, having received the constitutional majority, was declared adopted.
There being no objection, the Rules Committee was relieved of Engrossed Substitute Senate Bill No. 5386 and the bill was placed on the second reading calendar.
ENGROSSED SUBSTITUTE SENATE BILL NO. 5386, by Senate Committee on Health & Long-Term Care (originally sponsored by Senators Quigley, Franklin, C. Anderson and Wojahn; by request of Health Care Authority)
Modifying provision of the basic health plan.
The bill was read the second time.
Representative Dyer moved adoption of the following amendment by Representative Dyer:
Strike everything after the enacting clause and insert the following:
"Sec. 1. RCW 70.47.060 and 1994 c 309 s 5 are each amended to read as follows:
The administrator has the following powers and duties:
(1) To design and from time to time revise a schedule of covered basic health care services, including physician services, inpatient and outpatient hospital services, prescription drugs and medications, and other services that may be necessary for basic health care ((, which)). In addition, the administrator may offer as basic health plan services chemical dependency services, mental health services and organ transplant services; however, no one service or any combination of these three services shall increase the actuarial value of the basic health plan benefits by more than five percent excluding inflation, as determined by the office of financial management. All subsidized and nonsubsidized enrollees in any participating managed health care system under the Washington basic health plan shall be entitled to receive in return for premium payments to the plan. The schedule of services shall emphasize proven preventive and primary health care and shall include all services necessary for prenatal, postnatal, and well-child care. However, with respect to coverage for groups of subsidized enrollees who are eligible to receive prenatal and postnatal services through the medical assistance program under chapter 74.09 RCW, the administrator shall not contract for such services except to the extent that such services are necessary over not more than a one-month period in order to maintain continuity of care after diagnosis of pregnancy by the managed care provider. The schedule of services shall also include a separate schedule of basic health care services for children, eighteen years of age and younger, for those subsidized or nonsubsidized enrollees who choose to secure basic coverage through the plan only for their dependent children. In designing and revising the schedule of services, the administrator shall consider the guidelines for assessing health services under the mandated benefits act of 1984, RCW 48.42.080, and such other factors as the administrator deems appropriate. ((On and after July 1, 1995, the uniform benefits package adopted and from time to time revised by the Washington health services commission pursuant to RCW 43.72.130 shall be implemented by the administrator as the schedule of covered basic health care services.))
However, with respect to coverage for subsidized enrollees who are eligible to receive prenatal and postnatal services through the medical assistance program under chapter 74.09 RCW, the administrator shall not contract for such services except to the extent that the services are necessary over not more than a one-month period in order to maintain continuity of care after diagnosis of pregnancy by the managed care provider.
(2)(a) To design and implement a structure of periodic premiums due the administrator from subsidized enrollees that is based upon gross family income, giving appropriate consideration to family size and the ages of all family members. The enrollment of children shall not require the enrollment of their parent or parents who are eligible for the plan. The structure of periodic premiums shall be applied to subsidized enrollees entering the plan as individuals pursuant to subsection (9) of this section and to the share of the cost of the plan due from subsidized enrollees entering the plan as employees pursuant to subsection (10) of this section.
(b) To determine the periodic premiums due the administrator from nonsubsidized enrollees. Premiums due from nonsubsidized enrollees shall be in an amount equal to the cost charged by the managed health care system provider to the state for the plan plus the administrative cost of providing the plan to those enrollees and the premium tax under RCW 48.14.0201.
(c) An employer or other financial sponsor may, with the prior approval of the administrator, pay the premium, rate, or any other amount on behalf of a subsidized or nonsubsidized enrollee, by arrangement with the enrollee and through a mechanism acceptable to the administrator, but in no case shall the payment made on behalf of the enrollee exceed the total premiums due from the enrollee.
(d) To develop, as an offering by all health carriers providing coverage identical to the basic health plan, a model plan benefits package with uniformity in enrollee cost-sharing requirements.
(3) To design and implement a structure of ((copayments)) enrollee cost sharing due a managed health care system from subsidized and nonsubsidized enrollees. The structure shall discourage inappropriate enrollee utilization of health care services, and may utilize copayments, deductibles, and other cost-sharing mechanisms, but shall not be so costly to enrollees as to constitute a barrier to appropriate utilization of necessary health care services. ((On and after July 1, 1995, the administrator shall endeavor to make the copayments structure of the plan consistent with enrollee point of service cost-sharing levels adopted by the Washington health services commission, giving consideration to funding available to the plan.))
(4) To limit enrollment of persons who qualify for subsidies so as to prevent an overexpenditure of appropriations for such purposes. Whenever the administrator finds that there is danger of such an overexpenditure, the administrator shall close enrollment until the administrator finds the danger no longer exists.
(5) To limit the payment of subsidies to subsidized enrollees, as defined in RCW 70.47.020. The level of subsidy provided to persons who qualify may be based on the lowest cost plans, as defined by the administrator.
(6) To adopt a schedule for the orderly development of the delivery of services and availability of the plan to residents of the state, subject to the limitations contained in RCW 70.47.080 or any act appropriating funds for the plan.
(7) To solicit and accept applications from managed health care systems, as defined in this chapter, for inclusion as eligible basic health care providers under the plan. The administrator shall endeavor to assure that covered basic health care services are available to any enrollee of the plan from among a selection of two or more participating managed health care systems. In adopting any rules or procedures applicable to managed health care systems and in its dealings with such systems, the administrator shall consider and make suitable allowance for the need for health care services and the differences in local availability of health care resources, along with other resources, within and among the several areas of the state. Contracts with participating managed health care systems shall ensure that basic health plan enrollees who become eligible for medical assistance may, at their option, continue to receive services from their existing providers within the managed health care system if such providers have entered into provider agreements with the department of social and health services.
(8) To receive periodic premiums from or on behalf of subsidized and nonsubsidized enrollees, deposit them in the basic health plan operating account, keep records of enrollee status, and authorize periodic payments to managed health care systems on the basis of the number of enrollees participating in the respective managed health care systems.
(9) To accept applications from individuals residing in areas served by the plan, on behalf of themselves and their spouses and dependent children, for enrollment in the Washington basic health plan as subsidized or nonsubsidized enrollees, to establish appropriate minimum-enrollment periods for enrollees as may be necessary, and to determine, upon application and ((at least semiannually thereafter)) on a reasonable schedule defined by the authority, or at the request of any enrollee, eligibility due to current gross family income for sliding scale premiums. No subsidy may be paid with respect to any enrollee whose current gross family income exceeds twice the federal poverty level or, subject to RCW 70.47.110, who is a recipient of medical assistance or medical care services under chapter 74.09 RCW. If, as a result of an eligibility review, the administrator determines that a subsidized enrollee's income exceeds twice the federal poverty level and that the enrollee knowingly failed to inform the plan of such increase in income, the administrator may bill the enrollee for the subsidy paid on the enrollee's behalf during the period of time that the enrollee's income exceeded twice the federal poverty level. If a number of enrollees drop their enrollment for no apparent good cause, the administrator may establish appropriate rules or requirements that are applicable to such individuals before they will be allowed to re-enroll in the plan.
(10) To accept applications from business owners on behalf of themselves and their employees, spouses, and dependent children, as subsidized or nonsubsidized enrollees, who reside in an area served by the plan. The administrator may require all or the substantial majority of the eligible employees of such businesses to enroll in the plan and establish those procedures necessary to facilitate the orderly enrollment of groups in the plan and into a managed health care system. The administrator ((shall)) may require that a business owner pay at least ((fifty percent of the nonsubsidized)) an amount equal to what the employee pays after the state pays its portion of the subsidized premium cost of the plan on behalf of each employee enrolled in the plan. Enrollment is limited to those not eligible for medicare who wish to enroll in the plan and choose to obtain the basic health care coverage and services from a managed care system participating in the plan. The administrator shall adjust the amount determined to be due on behalf of or from all such enrollees whenever the amount negotiated by the administrator with the participating managed health care system or systems is modified or the administrative cost of providing the plan to such enrollees changes.
(11) To determine the rate to be paid to each participating managed health care system in return for the provision of covered basic health care services to enrollees in the system. Although the schedule of covered basic health care services will be the same for similar enrollees, the rates negotiated with participating managed health care systems may vary among the systems. In negotiating rates with participating systems, the administrator shall consider the characteristics of the populations served by the respective systems, economic circumstances of the local area, the need to conserve the resources of the basic health plan trust account, and other factors the administrator finds relevant.
(12) To monitor the provision of covered services to enrollees by participating managed health care systems in order to assure enrollee access to good quality basic health care, to require periodic data reports concerning the utilization of health care services rendered to enrollees in order to provide adequate information for evaluation, and to inspect the books and records of participating managed health care systems to assure compliance with the purposes of this chapter. In requiring reports from participating managed health care systems, including data on services rendered enrollees, the administrator shall endeavor to minimize costs, both to the managed health care systems and to the plan. The administrator shall coordinate any such reporting requirements with other state agencies, such as the insurance commissioner and the department of health, to minimize duplication of effort.
(13) To evaluate the effects this chapter has on private employer-based health care coverage and to take appropriate measures consistent with state and federal statutes that will discourage the reduction of such coverage in the state.
(14) To develop a program of proven preventive health measures and to integrate it into the plan wherever possible and consistent with this chapter.
(15) To provide, consistent with available funding, assistance for rural residents, undeserved populations, and persons of color.
Sec. 2. RCW 70.47.020 and 1994 c 309 s 4 are each amended to read as follows:
As used in this chapter:
(1) "Washington basic health plan" or "plan" means the system of enrollment and payment on a prepaid capitated basis for basic health care services, administered by the plan administrator through participating managed health care systems, created by this chapter.
(2) "Administrator" means the Washington basic health plan administrator, who also holds the position of administrator of the Washington state health care authority.
(3) "Managed health care system" means any health care organization, including health care providers, insurers, health care service contractors, health maintenance organizations, or any combination thereof, that provides directly or by contract basic health care services, as defined by the administrator and rendered by duly licensed providers, on a prepaid capitated basis to a defined patient population enrolled in the plan and in the managed health care system. ((On and after July 1, 1995, "managed health care system" means a certified health plan, as defined in RCW 43.72.010.))
(4) "Subsidized enrollee" means an individual, or an individual plus the individual's spouse or dependent children, not eligible for medicare, who resides in an area of the state served by a managed health care system participating in the plan, whose gross family income at the time of enrollment does not exceed twice the federal poverty level as adjusted for family size and determined annually by the federal department of health and human services, ((who the administrator determines shall not have, or shall not have voluntarily relinquished health insurance more comprehensive than that offered by the plan as of the effective date of enrollment,)) and who chooses to obtain basic health care coverage from a particular managed health care system in return for periodic payments to the plan.
(5) "Nonsubsidized enrollee" means an individual, or an individual plus the individual's spouse or dependent children, not eligible for medicare, who resides in an area of the state served by a managed health care system participating in the plan, ((who the administrator determines shall not have, or shall not have voluntarily relinquished health insurance more comprehensive than that offered by the plan as of the effective date of enrollment,)) and who chooses to obtain basic health care coverage from a particular managed health care system, and who pays or on whose behalf is paid the full costs for participation in the plan, without any subsidy from the plan.
(6) "Subsidy" means the difference between the amount of periodic payment the administrator makes to a managed health care system on behalf of a subsidized enrollee plus the administrative cost to the plan of providing the plan to that subsidized enrollee, and the amount determined to be the subsidized enrollee's responsibility under RCW 70.47.060(2).
(7) "Premium" means a periodic payment, based upon gross family income which an individual, their employer or another financial sponsor makes to the plan as consideration for enrollment in the plan as a subsidized enrollee or a nonsubsidized enrollee.
(8) "Rate" means the per capita amount, negotiated by the administrator with and paid to a participating managed health care system, that is based upon the enrollment of subsidized and nonsubsidized enrollees in the plan and in that system.
NEW SECTION. Sec. 3. A new section is added to chapter 70.47 RCW to read as follows:
(1) The legislature recognizes that every individual possesses a fundamental right to exercise their religious beliefs and conscience. The legislature further recognizes that in developing public policy, conflicting religious and moral beliefs must be respected. Therefore, while recognizing the right of conscientious objection to participating in specific health services, the state shall also recognize the right of individuals enrolled with the basic health plan to receive the full range of services covered under the basic health plan.
(2)(a) No individual health care provider, religiously sponsored health carrier, or health care facility may be required by law or contract in any circumstances to participate in the provision of or payment for a specific service if they object to so doing for reason of conscience or religion. No person may be discriminated against in employment or professional privileges because of such objection.
(b) The provisions of this section are not intended to result in an enrollee being denied timely access to any service included in the basic health plan. Each health carrier shall:
(i) Provide written notice to enrollees, upon enrollment with the plan, listing services that the carrier refuses to cover for reason of conscience or religion;
(ii) Provide written information describing how an enrollee may directly access services in an expeditious manner; and
(iii) Ensure that enrollees refused services under this section have prompt access to the information developed pursuant to (b)(ii) of this subsection.
(c) The administrator shall establish a mechanism or mechanisms to recognize the right to exercise conscience while ensuring enrollees timely access to services and to assure prompt payment to service providers.
(3)(a) No individual or organization with a religious or moral tenet opposed to a specific service may be required to purchase coverage for that service or services if they object to doing so for reason of conscience or religion.
(b) The provisions of this section shall not result in an enrollee being denied coverage of, and timely access to, any service or services excluded from their benefits package as a result of their employer's or another individual's exercise of the conscience clause in (a) of this subsection.
(c) The administrator shall define the process through which health carriers may offer the basic health plan to individuals and organizations identified in (a) and (b) of this subsection in accordance with the provisions of subsection (2)(c) of this section.
(4) Nothing in this section requires the health care authority, health carriers, health care facilities, or health care providers to provide any basic health plan service without payment of appropriate premium share or enrollee cost sharing.
NEW SECTION. Sec. 4. RCW 70.47.065 and 1993 c 494 s 6 are each repealed.
NEW SECTION. Sec. 5. 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 shall take effect July 1, 1995."
Correct the title accordingly.
Representative Cody moved adoption of the following amendment to the amendment by Representative Cody:
On page 1, line 15, after "health services" insert ", medical rehabilitation services"
On page 1, line 16, after "these" strike "three" and insert "four"
Representatives Cody, Costa and Thibaudeau spoke in favor of the adoption of the amendment to the amendment.
Representative Patterson demanded an electronic roll call vote and the demand was sustained.
Representative Dyer spoke against the adoption of the amendment to the amendment.
ROLL CALL
The Clerk called the roll on the adoption of the amendment, on page 1, line 15, to Engrossed Substitute Senate Bill No. 5386 and the amendment was not adopted by the following vote: Yeas - 36, Nays - 62, Absent - 0, Excused - 0.
Voting yea: Representatives Appelwick, Basich, Brown, Chappell, Chopp, Cody, Cole, Conway, Costa, Dickerson, Ebersole, Fisher, G., Fisher, R., Grant, Hatfield, Honeyford, Jacobsen, Kessler, Kremen, Mason, Mastin, Morris, Ogden, Patterson, Poulsen, Quall, Regala, Romero, Rust, Scott, Sommers, Thibaudeau, Tokuda, Valle, Veloria and Wolfe - 36.
Voting nay: Representatives Backlund, Ballasiotes, Beeksma, Benton, Blanton, Boldt, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Clements, Cooke, Crouse, Dellwo, Delvin, Dyer, Elliot, Foreman, Fuhrman, Goldsmith, Hankins, Hargrove, Hickel, Horn, Huff, Hymes, Johnson, Koster, Lambert, Lisk, McMahan, McMorris, Mielke, Mitchell, Mulliken, Pelesky, Pennington, Radcliff, Reams, Robertson, Schmidt, D., Schmidt, K., Schoesler, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Sterk, Stevens, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven and Mr. Speaker - 62.
I intended to vote NAY on amendment number 895 to Engrossed Substitute Senate Bill No. 5386.
JIM HONEYFORD, 12th District
Representative Campbell moved adoption of the following amendment to the amendment by Representative Campbell:
On page 1, line 15, after "health services" insert ", chiropractic services"
On page 1, line 16, after "these" strike "three" and insert "four"
Representatives Campbell, Ebersole, Conway and Cody spoke in favor of the adoption of the amendment to the amendment.
Representative Patterson demanded an electronic roll call vote and the demand was sustained.
Representative Dyer spoke against the adoption of the amendment to the amendment.
ROLL CALL
The Clerk called the roll on the adoption of the amendment, on page 1, line 15, to Engrossed Substitute Senate Bill No. 5386 and the amendment was not adopted by the following vote: Yeas - 35, Nays - 62, Absent - 0, Excused - 1.
Voting yea: Representatives Appelwick, Basich, Brown, Campbell, Chappell, Chopp, Cody, Cole, Conway, Costa, Dickerson, Ebersole, Fisher, G., Grant, Hatfield, Jacobsen, Kessler, Kremen, Mason, Mastin, Morris, Ogden, Patterson, Poulsen, Quall, Regala, Romero, Scott, Smith, Sommers, Thibaudeau, Tokuda, Valle, Veloria and Wolfe - 35.
Voting nay: Representatives Backlund, Ballasiotes, Beeksma, Blanton, Boldt, Brumsickle, Buck, Cairnes, Carlson, Carrell, Casada, Chandler, Clements, Cooke, Crouse, Dellwo, Delvin, Dyer, Elliot, Fisher, R., Foreman, Fuhrman, Goldsmith, Hankins, Hargrove, Hickel, Honeyford, Horn, Huff, Hymes, Johnson, Koster, Lambert, Lisk, McMahan, McMorris, Mielke, Mitchell, Mulliken, Pelesky, Pennington, Radcliff, Reams, Robertson, Rust, Schmidt, D., Schmidt, K., Schoesler, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Sterk, Stevens, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven and Mr. Speaker - 62.
Excused: Representative Benton - 1.
Representative Dyer spoke in favor of the adoption of the striking amendment.
The striking amendment was adopted.
There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.
Representatives Dyer, Campbell, Ebersole, Conway and Dellwo spoke in favor of passage of the bill.
Representatives Cody and Romero spoke against passage of the bill.
MOTION
On motion of Representative McMahan, Representative Benton was excused.
The Speaker stated the question before the House to be final passage of Engrossed Substitute Senate Bill No. 5386 as amended by the House.
ROLL CALL
The Clerk called the roll on the final passage of Engrossed Substitute Senate Bill No. 5386 as amended by the House, and the bill passed the House by the following vote: Yeas - 96, Nays - 1, Absent - 0, Excused - 1.
Voting yea: Representatives Appelwick, Backlund, Ballasiotes, Basich, Beeksma, Blanton, Boldt, Brown, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chappell, Chopp, Clements, Cole, Conway, Cooke, Costa, Crouse, Dellwo, Delvin, Dickerson, Dyer, Ebersole, Elliot, Fisher, G., Fisher, R., Foreman, Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Jacobsen, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mason, Mastin, McMahan, McMorris, Mielke, Mitchell, Morris, Mulliken, Ogden, Patterson, Pelesky, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Rust, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Sommers, Sterk, Stevens, Talcott, Thibaudeau, Thomas, B., Thomas, L., Thompson, Tokuda, Valle, Van Luven, Veloria, Wolfe and Mr. Speaker - 96.
Voting nay: Representative Cody - 1.
Excused: Representative Benton - 1.
Engrossed Substitute Senate Bill No. 5386, as amended by the House, having received the constitutional majority, was declared passed.
There being no objection, the House advanced to the seventh order of business.
SENATE AMENDMENTS TO HOUSE BILL
April 14, 1995
Mr. Speaker:
The Senate has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 1010 with the following amendments:
Strike everything after the enacting clause and insert the following:
"NEW SECTION. Sec. 1. (1) The legislature finds that:
(a) One of its fundamental responsibilities, to the benefit of all the citizens of the state, is the protection of public health and safety, including health and safety in the workplace, and the preservation of the extraordinary natural environment with which Washington is endowed;
(b) Essential to this mission is the delegation of authority to state agencies to implement the policies established by the legislature; and that the adoption of administrative rules by these agencies helps assure that these policies are clearly understood, fairly applied, and uniformly enforced;
(c) Despite its importance, Washington's regulatory system must not impose excessive, unreasonable, or unnecessary obligations; to do so serves only to discredit government, makes enforcement of essential regulations more difficult, and detrimentally affects the economy of the state and the well-being of our citizens.
(2) The legislature therefore enacts chapter . . ., Laws of 1995 (this act), to be known as the regulatory reform act of 1995, to ensure that the citizens and environment of this state receive the highest level of protection, in an effective and efficient manner, without stifling legitimate activities and responsible economic growth. To that end, it is the intent of the legislature, in the adoption of this act, that:
(a) Unless otherwise authorized, substantial policy decisions affecting the public be made by those directly accountable to the public, namely the legislature, and that state agencies not use their administrative authority to create or amend regulatory programs;
(b) When an agency is authorized to adopt rules imposing obligations on the public, that it do so responsibly: The rules it adopts should be justified and reasonable, with the agency having determined, based on common sense criteria established by the legislature, that the obligations imposed are truly in the public interest;
(c) Governments at all levels better coordinate their regulatory efforts to avoid confusing and frustrating the public with overlapping or contradictory requirements;
(d) The public respect the process whereby administrative rules are adopted, whether or not they agree with the result: Members of the public affected by administrative rules must have the opportunity for a meaningful role in their development; the bases for agency action must be legitimate and clearly articulated;
(e) Members of the public have adequate opportunity to challenge administrative rules with which they have legitimate concerns through meaningful review of the rule by the executive, the legislature, and the judiciary. While it is the intent of the legislature that upon judicial review of a rule, a court should not substitute its judgment for that of an administrative agency, the court should determine whether the agency decision making was rigorous and deliberative; whether the agency reached its result through a process of reason; and whether the agency took a hard look at the rule before its adoption;
(f) In order to achieve greater compliance with administrative rules at less cost, that a cooperative partnership exist between agencies and regulated parties that emphasizes education and assistance before the imposition of penalties; and
(g) Workplace safety and health in this state not be diminished, whether provided by constitution, by statute, or by rule.
PART I
GRANTS OF AUTHORITY
NEW SECTION. Sec. 101. A new section is added to chapter 43.12 RCW to read as follows:
For rules adopted after the effective date of this section, the commissioner of public lands may not rely solely on a section of law stating a statute's intent or purpose, on the enabling provisions of the statute establishing the agency, or on any combination of such provisions, for statutory authority to adopt any rule.
NEW SECTION. Sec. 102. A new section is added to chapter 43.20A RCW to read as follows:
For rules adopted after the effective date of this section, the secretary may not rely solely on a section of law stating a statute's intent or purpose, on the enabling provisions of the statute establishing the agency, or on any combination of such provisions, for statutory authority to adopt any rule.
Sec. 103. RCW 43.21A.080 and 1970 ex.s. c 62 s 8 are each amended to read as follows:
The director of the department of ecology is authorized to adopt such rules and regulations as are necessary and appropriate to carry out the provisions of this chapter: PROVIDED, That the director may not adopt rules after the effective date of this section that are based solely on a section of law stating a statute's intent or purpose, on the enabling provisions of the statute establishing the agency, or on any combination of such provisions, for statutory authority to adopt the rule.
NEW SECTION. Sec. 104. A new section is added to chapter 43.23 RCW to read as follows:
For rules adopted after the effective date of this section, the director of agriculture may not rely solely on a section of law stating a statute's intent or purpose, on the enabling provisions of the statute establishing the agency, or on any combination of such provisions, for statutory authority to adopt any rule.
Sec. 105. RCW 43.70.040 and 1989 1st ex.s. c 9 s 106 are each amended to read as follows:
In addition to any other powers granted the secretary, the secretary may:
(1) Adopt, in accordance with chapter 34.05 RCW, rules necessary to carry out the provisions of ((this act)) chapter 9, Laws of 1989 1st ex. sess.: PROVIDED, That for rules adopted after the effective date of this section, the secretary may not rely solely on a section of law stating a statute's intent or purpose, on the enabling provisions of the statute establishing the agency, or on any combination of such provisions, for statutory authority to adopt any rule;
(2) Appoint such advisory committees as may be necessary to carry out the provisions of ((this act)) chapter 9, Laws of 1989 1st ex. sess. Members of such advisory committees are authorized to receive travel expenses in accordance with RCW 43.03.050 and 43.03.060. The secretary and the board of health shall review each advisory committee within their jurisdiction and each statutory advisory committee on a biennial basis to determine if such advisory committee is needed. The criteria specified in RCW 43.131.070 shall be used to determine whether or not each advisory committee shall be continued;
(3) Undertake studies, research, and analysis necessary to carry out the provisions of ((this act)) chapter 9, Laws of 1989 1st ex. sess. in accordance with RCW 43.70.050;
(4) Delegate powers, duties, and functions of the department to employees of the department as the secretary deems necessary to carry out the provisions of ((this act)) chapter 9, Laws of 1989 1st ex. sess.;
(5) Enter into contracts on behalf of the department to carry out the purposes of ((this act)) chapter 9, Laws of 1989 1st ex. sess.;
(6) Act for the state in the initiation of, or the participation in, any intergovernmental program to the purposes of ((this act)) chapter 9, Laws of 1989 1st ex. sess.; or
(7) Accept gifts, grants, or other funds.
Sec. 106. RCW 82.01.060 and 1977 c 75 s 92 are each amended to read as follows:
The director of revenue, hereinafter in ((this 1967 amendatory act)) chapter 26, Laws of 1967 ex. sess. referred to as the director, through the department of revenue, hereinafter in ((this 1967 amendatory act)) chapter 26, Laws of 1967 ex. sess. referred to as the department, shall:
(1) Assess and collect all taxes and administer all programs relating to taxes which are the responsibility of the tax commission at the time ((this 1967 amendatory act)) chapter 26, Laws of 1967 ex. sess. takes effect or which the legislature may hereafter make the responsibility of the director or of the department;
(2) Make, adopt and publish such rules ((and regulations)) as he or she may deem necessary or desirable to carry out the powers and duties imposed upon him or her or the department by the legislature: PROVIDED, That the director may not adopt rules after the effective date of this section that are based solely on a section of law stating a statute's intent or purpose, on the enabling provisions of the statute establishing the agency, or on any combination of such provisions, for statutory authority to adopt any rule;
(3) Rules ((and regulations)) adopted by the tax commission ((prior to)) before the effective date of this ((1967 amendatory act)) section shall remain in force until such time as they may be revised or rescinded by the director;
(((3))) (4) Provide by general regulations for an adequate system of departmental review of the actions of the department or of its officers and employees in the assessment or collection of taxes;
(((4))) (5) Maintain a tax research section with sufficient technical, clerical and other employees to conduct constant observation and investigation of the effectiveness and adequacy of the revenue laws of this state and of the sister states in order to assist the governor, the legislature and the director in estimation of revenue, analysis of tax measures, and determination of the administrative feasibility of proposed tax legislation and allied problems;
(((5))) (6) Recommend to the governor such amendments, changes in, and modifications of the revenue laws as seem proper and requisite to remedy injustice and irregularities in taxation, and to facilitate the assessment and collection of taxes in the most economical manner.
NEW SECTION. Sec. 107. A new section is added to chapter 43.24 RCW to read as follows:
For rules adopted after the effective date of this section, the director of the department of licensing may not rely solely on a section of law stating a statute's intent or purpose, on the enabling provisions of the statute establishing the agency, or on any combination of such provisions, for statutory authority to adopt any rule, except rules defining or clarifying terms in, or procedures necessary to the implementation of, a statute.
Sec. 108. RCW 46.01.110 and 1979 c 158 s 120 are each amended to read as follows:
The director of licensing is hereby authorized to adopt and enforce such reasonable rules ((and regulations)) as may be consistent with and necessary to carry out the provisions relating to vehicle licenses, certificates of ownership and license registration and drivers' licenses not in conflict with the provisions of Title 46 RCW: PROVIDED, That the director of licensing may not adopt rules after the effective date of this section that are based solely on a section of law stating a statute's intent or purpose, on the enabling provisions of the statute establishing the agency, or on any combination of such provisions, for statutory authority to adopt any rule.
Sec. 109. RCW 50.12.040 and 1973 1st ex.s. c 158 s 3 are each amended to read as follows:
((Regular)) Permanent and emergency rules ((and regulations)) shall be adopted, amended, or repealed by the commissioner in accordance with the provisions of Title 34 RCW and the rules ((or regulations)) adopted pursuant thereto: PROVIDED, That the commissioner may not adopt rules after the effective date of this section that are based solely on a section of law stating a statute's intent or purpose, on the enabling provisions of the statute establishing the agency, or on any combination of such provisions, for statutory authority to adopt any rule.
Sec. 110. RCW 76.09.040 and 1994 c 264 s 48 are each amended to read as follows:
(1) Where necessary to accomplish the purposes and policies stated in RCW 76.09.010, and to implement the provisions of this chapter, the board shall ((promulgate)) adopt forest practices ((regulations)) rules pursuant to chapter 34.05 RCW and in accordance with the procedures enumerated in this section: PROVIDED, That the board may not adopt rules after the effective date of this section that are based solely on a section of law stating a statute's intent or purpose, on the enabling provisions of the statute establishing the agency, or on any combination of such provisions, for statutory authority to adopt any rule.
(2) The board shall adopt rules that:
(a) Establish minimum standards for forest practices;
(b) Provide procedures for the voluntary development of resource management plans which may be adopted as an alternative to the minimum standards in (a) of this subsection if the plan is consistent with the purposes and policies stated in RCW 76.09.010 and the plan meets or exceeds the objectives of the minimum standards;
(c) Set forth necessary administrative provisions; and
(d) Establish procedures for the collection and administration of forest practice fees as set forth by this chapter.
Forest practices ((regulations)) rules pertaining to water quality protection shall be ((promulgated)) adopted individually by the board and by the department of ecology after they have reached agreement with respect thereto. All other forest practices ((regulations)) rules shall be ((promulgated)) adopted by the board.
Forest practices ((regulations)) rules shall be administered and enforced by the department except as otherwise provided in this chapter. Such ((regulations)) rules shall be ((promulgated)) adopted and administered so as to give consideration to all purposes and policies set forth in RCW 76.09.010.
(((2))) (3) The board shall prepare proposed forest practices ((regulations)) rules. In addition to any forest practices ((regulations)) rules relating to water quality protection proposed by the board, the department of ecology shall prepare proposed forest practices ((regulations)) rules relating to water quality protection.
Prior to initiating the rule making process, the proposed ((regulations)) rules shall be submitted for review and comments to the department of fish and wildlife and to the counties of the state. After receipt of the proposed forest practices ((regulations)) rules, the department of fish and wildlife and the counties of the state shall have thirty days in which to review and submit comments to the board, and to the department of ecology with respect to its proposed ((regulations)) rules relating to water quality protection. After the expiration of such thirty day period the board and the department of ecology shall jointly hold one or more hearings on the proposed ((regulations)) rules pursuant to chapter 34.05 RCW. At such hearing(s) any county may propose specific forest practices ((regulations)) rules relating to problems existing within such county. The board and the department of ecology may adopt such proposals if they find the proposals are consistent with the purposes and policies of this chapter.
Sec. 111. RCW 77.04.090 and 1984 c 240 s 1 are each amended to read as follows:
The commission shall adopt permanent rules and amendments to or repeals of existing rules by approval of four members by resolution, entered and recorded in the minutes of the commission: PROVIDED, That the commission may not adopt rules after the effective date of this section that are based solely on a section of law stating a statute's intent or purpose, on the enabling provisions of the statute establishing the agency, or on any combination of such provisions, for statutory authority to adopt any rule. The commission shall adopt emergency rules by approval of four members. The commission or the director, when adopting emergency rules under RCW 77.12.150, shall adopt rules in conformance with chapter 34.05 RCW. Judicial notice shall be taken of the rules filed and published as provided in RCW 34.05.380 and 34.05.210.
A copy of an emergency rule, certified as a true copy by a member of the commission, the director, or by a person authorized in writing by the director to make the certification, is admissible in court as prima facie evidence of the adoption and validity of the rule.
NEW SECTION. Sec. 112. A new section is added to chapter 43.22 RCW to read as follows:
For rules adopted after the effective date of this section, the director of the department of labor and industries may not rely solely on a statute's statement of intent or purpose, on the enabling provisions of the statute establishing the agency, or on any combination of such provisions, for statutory authority to adopt any rule: PROVIDED, That this section shall not apply to rules adopted pursuant to chapter 39.12 RCW. It is the intent of the legislature to retain the status quo and that the provisions of chapter . . ., Laws of 1995 (this act) shall neither explicitly or impliedly diminish nor expand the rule-making authority of the department under chapter 39.12 RCW.
Sec. 113. RCW 48.02.060 and 1947 c 79 s .02.06 are each amended to read as follows:
(1) The commissioner shall have the authority expressly conferred upon him or her by or reasonably implied from the provisions of this code.
(2) The commissioner shall execute his or her duties and shall enforce the provisions of this code.
(3) The commissioner may:
(a) Make reasonable rules and regulations for effectuating any provision of this code, except those relating to his or her election, qualifications, or compensation: PROVIDED, That the commissioner may not adopt rules after the effective date of this section that are based solely on this statute, or on a statute's statement of intent or purpose, or on the enabling provisions of the statute establishing the agency, or any combination of such provisions, for statutory authority to adopt any rule, except rules defining or clarifying terms in, or procedures necessary to the implementation of a statute. No such rules and regulations shall be effective prior to their being filed for public inspection in the commissioner's office.
(b) Conduct investigations to determine whether any person has violated any provision of this code.
(c) Conduct examinations, investigations, hearings, in addition to those specifically provided for, useful and proper for the efficient administration of any provision of this code.
Sec. 114. RCW 48.30.010 and 1985 c 264 s 13 are each amended to read as follows:
(1) No person engaged in the business of insurance shall engage in unfair methods of competition or in unfair or deceptive acts or practices in the conduct of such business as such methods, acts, or practices ((are defined pursuant to subsection (2) of this section.
(2) In addition to such unfair methods and unfair or deceptive acts or practices)) as are expressly defined and prohibited by this code((, the commissioner may from time to time by regulation promulgated pursuant to chapter 34.05 RCW, define other methods of competition and other acts and practices in the conduct of such business reasonably found by the commissioner to be unfair or deceptive.
(3) No such regulation shall be made effective prior to the expiration of thirty days after the date of the order by which it is promulgated)).
(((4))) (2) If the commissioner has cause to believe that any person is violating any such ((regulation)) rule or prohibition of this code, the commissioner may order such person to cease and desist therefrom. The commissioner shall deliver such order to such person direct or mail it to the person by registered mail with return receipt requested. If the person violates the order after expiration of ten days after the cease and desist order has been received by him or her, he or she may be fined by the commissioner a sum not to exceed two hundred and fifty dollars for each violation committed thereafter.
(((5))) (3) If any such ((regulation)) rule or prohibition of this code is violated, the commissioner may take such other or additional action as is permitted under the insurance code for violation of a ((regulation)) rule or that prohibition.
(4) Any permanent rule that was adopted by the commissioner under the authority of this section as it existed before the effective date of this section, and that was in effect as of the effective date of this section, shall, if otherwise valid, remain in effect until and unless it is repealed by the commissioner, who shall retain the authority to repeal any such rule, or is effectively repealed by an act of the legislature.
Sec. 115. RCW 48.44.050 and 1947 c 268 s 5 are each amended to read as follows:
The insurance commissioner shall make reasonable regulations in aid of the administration of this chapter which may include, but shall not be limited to regulations concerning the maintenance of adequate insurance, bonds, or cash deposits, information required of registrants, and methods of expediting speedy and fair payments to claimants: PROVIDED, That the commissioner may not adopt rules after the effective date of this section that are based solely on this section, a statute's statement of intent or purpose, or on the enabling provisions of the statute establishing the agency, or any combination of such provisions, for statutory authority to adopt any rule, except rules defining or clarifying terms in, or procedures necessary to the implementation of a statute.
Sec. 116. RCW 48.46.200 and 1975 1st ex.s. c 290 s 21 are each amended to read as follows:
The commissioner may adopt, in accordance with the provisions of the administrative procedure act, chapter 34.05 RCW, ((promulgate)) rules and regulations as necessary or proper to carry out the provisions of this chapter: PROVIDED, That the commissioner may not adopt rules after the effective date of this section that are based solely on this section, a statute's statement of intent or purpose, or on the enabling provisions of the statute establishing the agency, or any combination of such provisions, for statutory authority to adopt any rule, except rules defining or clarifying terms in, or procedures necessary to the implementation of a statute. Nothing in this chapter shall be construed to prohibit the commissioner from requiring changes in procedures previously approved by ((him)) the commissioner.
NEW SECTION. Sec. 117. A new section is added to chapter 70.94 RCW to read as follows:
(1) After the effective date of this section, the department may adopt or amend a rule under the authority of this chapter that exceeds the requirements of the federal clean air act or regulations adopted under it or that imposes burdens or obligations before the scheduled adoption of federal regulations addressing similar subject matter only after compliance with the procedures established in section 201 of this act.
(2) In fulfilling the requirements of section 201(1)(g)(ii) of this act, the department shall consider: (a) The differences between the proposed rule and the corresponding provisions of the federal clean air act; (b) the air quality problem that the proposed rule would address, including the sources of the problem and any factors that make the problem different in the state or in a part of the state than in other parts of the United States; and (c) the effect of the proposed rule in eliminating the problem or reducing its severity. This section shall not be interpreted to impede efforts to streamline or simplify federal air regulations that are developed with participation of the public and regulated entities.
(3) This section shall expire July 1, 1999.
NEW SECTION. Sec. 118. A new section is added to chapter 34.05 RCW under the subchapter heading Part III to read as follows:
For rules implementing statutes enacted after the effective date of this section, an agency may not rely solely on the section of law stating a statute's intent or purpose, or on the enabling provisions of the statute establishing the agency, or on any combination of such provisions, for its statutory authority to adopt the rule. An agency may use the statement of intent or purpose or the agency enabling provisions to interpret ambiguities in a statute's other provisions.
NEW SECTION. Sec. 119. A new section is added to chapter 34.05 RCW under the subchapter heading Part III to read as follows:
Section 118 of this act does not apply to: The commissioner of public lands, the department of social and health services, the department of ecology, the department of agriculture, the department of health, the department of revenue, the department of licensing, the department of labor and industries, the employment security department, the forest practices board, the fish and wildlife commission, and the office of the insurance commissioner.
PART II
RULE-MAKING CRITERIA
NEW SECTION. Sec. 201. A new section is added to chapter 34.05 RCW under the subchapter heading Part III to read as follows:
(1) Before adopting a rule described in subsection (5) of this section, an agency shall:
(a) Clearly state in detail the general goals and specific objectives of the statute that the rule implements;
(b) Determine that the rule is needed to achieve the general goals and specific objectives stated under (a) of this subsection, and analyze alternatives to rule making and the consequences of not adopting the rule;
(c) Determine that the probable benefits of the rule are greater than its probable costs, taking into account both the qualitative and quantitative benefits and costs and the specific directives of the statute being implemented;
(d) Determine, after considering alternative versions of the rule and the analysis required under (b) and (c) of this subsection, that the rule being adopted is the least burdensome alternative for those required to comply with it that will achieve the general goals and specific objectives stated under (a) of this subsection;
(e) Determine that the rule does not require those to whom it applies to take an action that violates requirements of another federal or state law;
(f) Determine that the rule does not impose more stringent performance requirements on private entities than on public entities unless required to do so by federal or state law;
(g) Determine if the rule differs from any federal regulation or statute applicable to the same activity or subject matter and, if so, determine that the difference is justified by the following:
(i) A state statute that explicitly allows the agency to differ from federal standards; or
(ii) Substantial evidence that the difference is necessary to achieve the general goals and specific objectives stated under (a) of this subsection; and
(h) Coordinate the rule, to the maximum extent practicable, with other federal, state, and local laws applicable to the same activity or subject matter.
(2) In making its determinations pursuant to subsection (1)(b) through (g) of this section, the agency shall place in the rule-making file documentation of sufficient quantity and quality so as to persuade a reasonable person that the determinations are justified.
(3) Before adopting rules described in subsection (5) of this section, an agency shall place in the rule-making file a rule implementation plan for rules filed under each adopting order. The plan shall describe how the agency intends to:
(a) Implement and enforce the rule, including a description of the resources the agency intends to use;
(b) Inform and educate affected persons about the rule;
(c) Promote and assist voluntary compliance; and
(d) Evaluate whether the rule achieves the purpose for which it was adopted, including, to the maximum extent practicable, the use of interim milestones to assess progress and the use of objectively measurable outcomes.
(4) After adopting a rule described in subsection (5) of this section regulating the same activity or subject matter as another provision of federal or state law, an agency shall do all of the following:
(a) Provide to the business assistance center a list citing by reference the other federal and state laws that regulate the same activity or subject matter;
(b) Coordinate implementation and enforcement of the rule with the other federal and state entities regulating the same activity or subject matter by making every effort to do one or more of the following:
(i) Deferring to the other entity;
(ii) Designating a lead agency; or
(iii) Entering into an agreement with the other entities specifying how the agency and entities will coordinate implementation and enforcement.
If the agency is unable to comply with this subsection (4)(b), the agency shall report to the legislature pursuant to (c) of this subsection;
(c) Report to the joint administrative rules review committee:
(i) The existence of any overlap or duplication of other federal or state laws, any differences from federal law, and any known overlap, duplication, or conflict with local laws; and
(ii) Make recommendations for any legislation that may be necessary to eliminate or mitigate any adverse effects of such overlap, duplication, or difference.
(5)(a) Except as provided in (b) of this subsection, this section applies to:
(i) Significant legislative rules of the departments of ecology, labor and industries, health, revenue, and natural resources, the employment security department, the forest practices board, the office of the insurance commissioner, and to the legislative rules of the department of fish and wildlife implementing chapter 75.20 RCW; and
(ii) Any rule of any agency, if this section is voluntarily made applicable to the rule by the agency, or is made applicable to the rule by a majority vote of the joint administrative rules review committee within forty-five days of receiving the notice of proposed rule making under RCW 34.05.320.
(b) This section does not apply to:
(i) Emergency rules adopted under RCW 34.05.350;
(ii) Rules relating only to internal governmental operations that are not subject to violation by a nongovernment party;
(iii) Rules adopting or incorporating by reference without material change federal statutes or regulations, Washington state statutes, rules of other Washington state agencies, shoreline master programs other than those programs governing shorelines of state-wide significance, or, as referenced by Washington state law, national consensus codes that generally establish industry standards, if the material adopted or incorporated regulates the same subject matter and conduct as the adopting or incorporating rule;
(iv) Rules that only correct typographical errors, make address or name changes, or clarify language of a rule without changing its effect;
(v) Rules the content of which is explicitly and specifically dictated by statute; or
(vi) Rules that set or adjust fees or rates pursuant to legislative standards.
(c) For purposes of this subsection:
(i) A "procedural rule" is a rule that adopts, amends, or repeals (A) any procedure, practice, or requirement relating to any agency hearings; (B) any filing or related process requirement for making application to an agency for a license or permit; or (C) any policy statement pertaining to the consistent internal operations of an agency.
(ii) An "interpretive rule" is a rule, the violation of which does not subject a person to a penalty or sanction, that sets forth the agency̓s interpretation of statutory provisions it administers.
(iii) A "significant legislative rule" is a rule other than a procedural or interpretive rule that (A) adopts substantive provisions of law pursuant to delegated legislative authority, the violation of which subjects a violator of such rule to a penalty or sanction; (B) establishes, alters, or revokes any qualification or standard for the issuance, suspension, or revocation of a license or permit; or (C) adopts a new, or makes significant amendments to, a policy or regulatory program.
(d) In the notice of proposed rule making under RCW 34.05.320, an agency shall state whether this section applies to the proposed rule pursuant to (a)(i) of this subsection, or if the agency will apply this section voluntarily.
(6) By January 31, 1996, and by January 31st of each even-numbered year thereafter, the office of financial management, after consulting with state agencies, counties, and cities, and business, labor, and environmental organizations, shall report to the governor and the legislature regarding the effects of this section on the regulatory system in this state. The report shall document:
(a) The rules proposed to which this section applied and to the extent possible, how compliance with this section affected the substance of the rule, if any, that the agency ultimately adopted;
(b) The costs incurred by state agencies in complying with this section;
(c) Any legal action maintained based upon the alleged failure of any agency to comply with this section, the costs to the state of such action, and the result;
(d) The extent to which this section has adversely affected the capacity of agencies to fulfill their legislatively prescribed mission;
(e) The extent to which this section has improved the acceptability of state rules to those regulated; and
(f) Any other information considered by the office of financial management to be useful in evaluating the effect of this section.
PART III
PUBLIC PARTICIPATION
Sec. 301. RCW 34.05.310 and 1994 c 249 s 1 are each amended to read as follows:
(1) To meet the intent of providing greater public access to administrative rule making and to promote consensus among interested parties, agencies shall solicit comments from the public on a subject of possible rule making before ((publication of)) filing with the code reviser a notice of proposed rule ((adoption)) making under RCW 34.05.320. The agency shall prepare a statement of ((intent)) inquiry that:
(a) ((States the specific statutory authority for the new rule;
(b) Identifies the reasons the new rule is needed;
(c) Identifies the goals of the new rule;
(d) Describes)) Identifies the specific statute or statutes authorizing the agency to adopt rules on this subject;
(b) Discusses why rules on this subject may be needed and what they might accomplish;
(c) Identifies other federal and state agencies that regulate this subject, and describes the process whereby the agency would coordinate the contemplated rule with these agencies;
(d) Discusses the process by which the rule ((will)) might be developed, including, but not limited to, negotiated rule making, pilot rule making, or agency study; ((and))
(e) Specifies the process by which interested parties can effectively participate in the ((formulation of the)) decision to adopt a new rule and formulation of a proposed rule before its publication.
The statement of ((intent)) inquiry shall be filed with the code reviser for publication in the state register at least thirty days before the date the agency files notice of proposed rule making under RCW 34.05.320 and shall be sent to any party that has requested receipt of the agency's statements of ((intent)) inquiry.
(2) Agencies are encouraged to develop and use new procedures for reaching agreement among interested parties before publication of notice and the adoption hearing on a proposed rule. Examples of new procedures include, but are not limited to:
(a) Negotiated rule making ((which includes:
(i) Identifying individuals and organizations that have a recognized interest in or will be significantly affected by the adoption of the proposed rule;
(ii) Soliciting participation by persons who are capable, willing, and appropriately authorized to enter into such negotiations;
(iii) Assuring that participants fully recognize the consequences of not participating in the process, are committed to negotiate in good faith, and recognize the alternatives available to other parties;
(iv) Establishing guidelines to encourage consideration of all pertinent issues, to set reasonable completion deadlines, and to provide fair and objective settlement of disputes that may arise;
(v) Agreeing on a reasonable time period during which the agency will be bound to the rule resulting from the negotiations without substantive amendment; and
(vi) Providing a mechanism by which one or more parties may withdraw from the process or the negotiations may be terminated if it appears that consensus cannot be reached on a draft rule that accommodates the needs of the agency, interested parties, and the general public and conforms to the legislative intent of the statute that the rule is intended to implement)) by which representatives of an agency and of the interests that are affected by a subject of rule making, including, where appropriate, county and city representatives, seek to reach consensus on the terms of the proposed rule and on the process by which it is negotiated; and
(b) Pilot rule making which includes testing the ((draft of a proposed rule)) feasibility of complying with or administering draft new rules or draft amendments to existing rules through the use of volunteer pilot ((study)) groups in various areas and circumstances, as provided in RCW 34.05.313 or as otherwise provided by the agency.
(3)(a) An agency must make a determination whether negotiated rule making, pilot rule making, or another process for generating participation from interested parties prior to development of the rule is appropriate.
(b) An agency must include a written justification in the rule-making file if an opportunity for interested parties to participate in the rule-making process prior to publication of the proposed rule has not been provided.
(4) This section does not apply to:
(a) Emergency rules adopted under RCW 34.05.350;
(b) Rules relating only to internal governmental operations that are not subject to violation by a nongovernment party;
(c) Rules adopting or incorporating by reference without material change federal statutes or regulations, Washington state statutes, rules of other Washington state agencies, shoreline master programs other than those programs governing shorelines of state-wide significance, or, as referenced by Washington state law, national consensus codes that generally establish industry standards, if the material adopted or incorporated regulates the same subject matter and conduct as the adopting or incorporating rule;
(d) Rules that only correct typographical errors, make address or name changes, or clarify language of a rule without changing its effect;
(e) Rules the content of which is explicitly and specifically dictated by statute;
(f) Rules that set or adjust fees or rates pursuant to legislative standards; or
(g) Rules that adopt, amend, or repeal:
(i) A procedure, practice, or requirement relating to agency hearings; or
(ii) A filing or related process requirement for applying to an agency for a license or permit.
Sec. 302. RCW 34.05.320 and 1994 c 249 s 14 are each amended to read as follows:
(1) At least twenty days before the rule-making hearing at which the agency receives public comment regarding adoption of a rule, the agency shall cause notice of the hearing to be published in the state register. The publication constitutes the proposal of a rule. The notice shall include all of the following:
(a) A title, a description of the rule's purpose, and any other information which may be of assistance in identifying the rule or its purpose;
(b) Citations of the statutory authority for adopting the rule and the specific statute the rule is intended to implement;
(c) A summary of the rule and a statement of the reasons supporting the proposed action;
(d) The agency personnel, with their office location and telephone number, who are responsible for the drafting, implementation, and enforcement of the rule;
(e) The name of the person or organization, whether private, public, or governmental, proposing the rule;
(f) Agency comments or recommendations, if any, regarding statutory language, implementation, enforcement, and fiscal matters pertaining to the rule;
(g) Whether the rule is necessary as the result of federal law or federal or state court action, and if so, a copy of such law or court decision shall be attached to the purpose statement;
(h) When, where, and how persons may present their views on the proposed rule;
(i) The date on which the agency intends to adopt the rule;
(j) A short explanation of the rule, its purpose, and anticipated effects, including in the case of a proposal that would modify existing rules, a short description of the changes the proposal would make; ((and))
(k) A ((statement indicating how a person can obtain a)) copy of the small business economic impact statement prepared under chapter 19.85 RCW, or an explanation for why the agency did not prepare the statement; and
(l) A statement indicating whether section 201 of this act applies to the rule adoption.
(2) Upon filing notice of the proposed rule with the code reviser, the adopting agency shall have copies of the notice on file and available for public inspection and shall forward three copies of the notice to the rules review committee.
(3) No later than three days after its publication in the state register, the agency shall cause a copy of the notice of proposed rule adoption to be mailed to each person ((who)), city, and county that has made a request to the agency for a mailed copy of such notices. An agency may charge for the actual cost of providing ((individual)) a requesting party mailed copies of these notices.
(4) In addition to the notice required by subsections (1) and (2) of this section, an institution of higher education shall cause the notice to be published in the campus or standard newspaper of the institution at least seven days before the rule-making hearing.
Sec. 303. RCW 34.05.313 and 1993 c 202 s 4 are each amended to read as follows:
((If,)) (1) During the development of a rule or after its adoption, an agency ((determines that implementation may produce unreasonable economic, procedural, or technical burdens, agencies are encouraged to)) may develop methods for measuring or testing the feasibility of ((compliance)) complying with or administering the rule((, including the use of voluntary pilot study groups)) and for identifying simple, efficient, and economical alternatives for achieving the goal of the rule. ((Measuring and testing methods should emphasize)) A pilot project shall include public notice, participation by ((persons who have a recognized interest in or are significantly affected by the adoption of the proposed rule)) volunteers who are or will be subject to the rule, a high level of involvement from agency management, ((consensus on issues and procedures among participants in the pilot group, assurance of fairness, and)) reasonable completion dates, and a process by which one or more parties may withdraw from the process or the process may be terminated ((if consensus cannot be reached on the rule)). Volunteers who agree to test a rule and attempt to meet the requirements of the draft rule, to report periodically to the proposing agency on the extent of their ability to meet the requirements of the draft rule, and to make recommendations for improving the draft rule shall not be obligated to comply fully with the rule being tested nor be subject to any enforcement action or other sanction for failing to comply with the requirements of the draft rule.
(2) An agency conducting a pilot rule project authorized under subsection (1) of this section may waive one or more provisions of agency rules otherwise applicable to participants in such a pilot project if the agency first determines that such a waiver is in the public interest and necessary to conduct the project. Such a waiver may be only for a stated period of time, not to exceed the duration of the project.
(3) The findings of the pilot project should be widely shared and, where appropriate, adopted as amendments to the rule.
(4) If an agency conducts a pilot rule project in lieu of meeting the requirements of the regulatory fairness act, chapter 19.85 RCW, the agency shall ensure the following conditions are met:
(a) If over ten small businesses are affected, there shall be at least ten small businesses in the test group and at least one-half of the volunteers participating in the pilot test group shall be small businesses.
(b)(i) If there are at least one hundred businesses affected, the participation by small businesses in the test group shall be as follows:
(A) Not less than twenty percent of the small businesses must employ twenty-six to fifty employees;
(B) Not less than twenty percent of the small businesses must employ eleven to twenty-six employees, and
(C) Not less than twenty percent of the small businesses must employ zero to ten employees.
(ii) If there do not exist a sufficient number of small businesses in each size category set forth in (b)(i) of this subsection willing to participate in the pilot project to meet the minimum requirements of that subsection, then the agency must comply with this section to the maximum extent practicable.
(c) The agency may not terminate the pilot project before completion.
(d) Before filing the notice of proposed rule making pursuant to RCW 34.05.320, the agency must prepare a report of the pilot rule project that includes:
(i) A description of the difficulties small businesses had in complying with the pilot rule;
(ii) A list of the recommended revisions to the rule to make compliance with the rule easier or to reduce the cost of compliance with the rule by the small businesses participating in the pilot rule project;
(iii) A written statement explaining the options it considered to resolve each of the difficulties described and a statement explaining its reasons for not including a recommendation by the pilot test group to revise the rule; and
(iv) If the agency was unable to meet the requirements set forth in (b)(i) of this subsection, a written explanation of why it was unable to do so and the steps the agency took to include small businesses in the pilot project.
Sec. 304. RCW 34.05.325 and 1994 c 249 s 7 are each amended to read as follows:
(1) The agency shall make a good faith effort to insure that the information on the proposed rule published pursuant to RCW 34.05.320 accurately reflects the rule to be presented and considered at the oral hearing on the rule. Written comment about a proposed rule, including supporting data, shall be accepted by an agency if received no later than the time and date specified in the notice, or such later time and date established at the rule-making hearing.
(2) The agency shall provide an opportunity for oral comment to be received by the agency in a rule-making hearing.
(3) If the agency possesses equipment capable of receiving telefacsimile transmissions or recorded telephonic communications, the agency may provide in its notice of hearing filed under RCW 34.05.320 that interested parties may comment on proposed rules by these means. If the agency chooses to receive comments by these means, the notice of hearing shall provide instructions for making such comments, including, but not limited to, appropriate telephone numbers to be used; the date and time by which comments must be received; required methods to verify the receipt and authenticity of the comments; and any limitations on the number of pages for telefacsimile transmission comments and on the minutes of tape recorded comments. The agency shall accept comments received by these means for inclusion in the official record if the comments are made in accordance with the agency's instructions.
(4) The agency head, a member of the agency head, or a presiding officer designated by the agency head shall preside at the rule-making hearing. Rule-making hearings shall be open to the public. The agency shall cause a record to be made of the hearing by stenographic, mechanical, or electronic means. Unless the agency head presides or is present at substantially all the hearings, the presiding official shall prepare a memorandum for consideration by the agency head, summarizing the contents of the presentations made at the rule-making hearing. The summarizing memorandum is a public document and shall be made available to any person in accordance with chapter 42.17 RCW.
(5) Rule-making hearings are legislative in character and shall be reasonably conducted by the presiding official to afford interested persons the opportunity to present comment. Rule-making hearings may be continued to a later time and place established on the record without publication of further notice under RCW 34.05.320.
(6) ((Before the adoption of a final rule)) (a) Before it files an adopted rule with the code reviser, an agency shall prepare a ((written summary of)) concise explanatory statement of the rule:
(i) Identifying the agency's reasons for adopting the rule;
(ii) Describing differences between the text of the proposed rule as published in the register and the text of the rule as adopted, other than editing changes, stating the reasons for differences; and
(iii) Summarizing all comments received regarding the proposed rule, and ((a substantive response)) responding to the comments by category or subject matter, indicating how the final rule reflects agency consideration of the comments, or why it fails to do so.
(b) The agency shall provide the ((written summary and response)) concise explanatory statement to any person upon request or from whom the agency received comment.
NEW SECTION. Sec. 305. RCW 34.05.355 and 1994 c 249 s 8 & 1988 c 288 s 310 are each repealed.
PART IV
REGULATORY FAIRNESS ACT
NEW SECTION. Sec. 401. A new section is added to chapter 19.85 RCW to read as follows:
(1) Unless an agency receives a written objection to the expedited repeal of a rule, this chapter does not apply to a rule proposed for expedited repeal pursuant to section 701 of this act. If an agency receives a written objection to expedited repeal of the rule, this chapter applies to the rule-making proceeding.
(2) This chapter does not apply to the adoption of a rule described in RCW 34.05.310(4).
(3) An agency is not required to prepare a separate small business economic impact statement under RCW 19.85.040 if it prepared an analysis under section 201 of this act that meets the requirements of a small business economic impact statement, and if the agency reduced the costs imposed by the rule on small business to the extent required by RCW 19.85.030(3). The portion of the analysis that meets the requirements of RCW 19.85.040 shall be filed with the code reviser and provided to any person requesting it in lieu of a separate small business economic impact statement.
Sec. 402. RCW 19.85.030 and 1994 c 249 s 11 are each amended to read as follows:
(1) ((In the adoption of any rule pursuant to RCW 34.05.320 that will impose more than minor costs on more than twenty percent of all industries, or more than ten percent of any one industry, the adopting agency:
(a) Shall reduce the economic impact of the rule on small business by doing one or more of the following when it is legal and feasible in meeting the stated objective of the statutes which are the basis of the proposed rule:
(i) Establish differing compliance or reporting requirements or timetables for small businesses;
(ii) Clarify, consolidate, or simplify the compliance and reporting requirements under the rule for small businesses;
(iii) Establish performance rather than design standards;
(iv) Exempt small businesses from any or all requirements of the rule;
(v) Reduce or modify fine schedules for noncompliance; and
(vi) Other mitigation techniques;
(b) Before filing notice of a proposed rule, shall prepare a small business economic impact statement in accordance with RCW 19.85.040 and file notice of how the person can obtain the statement with the code reviser as part of the notice required under RCW 34.05.320.
(2) If requested to do so by a majority vote of the joint administrative rules review committee within thirty days after notice of the proposed rule is published in the state register, an agency shall prepare a small business economic impact statement on the proposed rule before adoption of the rule. Upon completion, an agency shall provide a copy of the small business economic impact statement to any person requesting it.
(3))) In the adoption of a rule under chapter 34.05 RCW, an agency shall prepare a small business economic impact statement: (a) If the proposed rule will impose more than minor costs on businesses in an industry; or (b) if requested to do so by a majority vote of the joint administrative rules review committee within forty-five days of receiving the notice of proposed rule making under RCW 34.05.320. However, if the agency has completed the pilot rule process as defined by RCW 34.05.313 before filing the notice of a proposed rule, the agency is not required to prepare a small business economic impact statement.
An agency shall prepare the small business economic impact statement in accordance with RCW 19.85.040, and file it with the code reviser along with the notice required under RCW 34.05.320. An agency shall file a statement prepared at the request of the joint administrative rules review committee with the code reviser upon its completion before the adoption of the rule. An agency shall provide a copy of the small business economic impact statement to any person requesting it.
An agency may request assistance from the business assistance center in the preparation of the small business economic impact statement.
(((4))) (2) The business assistance center shall develop guidelines to assist agencies in determining whether a proposed rule will impose more than minor costs on businesses in an industry and therefore require preparation of a small business economic impact statement. The business assistance center may review an agency determination that a proposed rule will not impose such costs, and shall advise the joint administrative rules review committee on disputes involving agency determinations under this section.
(3) Based upon the extent of disproportionate impact on small business identified in the statement prepared under RCW 19.85.040, the agency shall, where legal and feasible in meeting the stated objectives of the statutes upon which the rule is based, reduce the costs imposed by the rule on small businesses. Methods to reduce the costs on small businesses may include:
(a) Reducing, modifying, or eliminating substantive regulatory requirements;
(b) Simplifying, reducing, or eliminating recordkeeping and reporting requirements;
(c) Reducing the frequency of inspections;
(d) Delaying compliance timetables;
(e) Reducing or modifying fine schedules for noncompliance; or
(f) Any other mitigation techniques.
Sec. 403. RCW 19.85.040 and 1994 c 249 s 12 are each amended to read as follows:
(1) A small business economic impact statement must include a brief description of the reporting, recordkeeping, and other compliance requirements of the proposed rule, and the kinds of professional services that a small business is likely to need in order to comply with such requirements. It shall analyze the costs of compliance for businesses required to comply with the proposed rule adopted pursuant to RCW 34.05.320, including costs of equipment, supplies, labor, and increased administrative costs. It shall consider, based on input received, whether compliance with the rule will cause businesses to lose sales or revenue. To determine whether the proposed rule will have a disproportionate impact on small businesses, the impact statement must compare the cost of compliance for small business with the cost of compliance for the ten percent of businesses that are the largest businesses required to comply with the proposed rules using one or more of the following as a basis for comparing costs:
(a) Cost per employee;
(b) Cost per hour of labor; or
(c) Cost per one hundred dollars of sales.
(2) A small business economic impact statement must also include:
(a) A statement of the steps taken by the agency to reduce the costs of the rule on small businesses as required by RCW 19.85.030(((1))) (3), or reasonable justification for not doing so, addressing the options listed in RCW 19.85.030(((1))) (3);
(b) A description of how the agency will involve small businesses in the development of the rule; and
(c) A list of industries that will be required to comply with the rule. However, this subsection (2)(c) shall not be construed to preclude application of the rule to any business or industry to which it would otherwise apply.
(3) To obtain information for purposes of this section, an agency may survey a representative sample of affected businesses or trade associations and should, whenever possible, appoint a committee under RCW 34.05.310(2) to assist in the accurate assessment of the costs of a proposed rule, and the means to reduce the costs imposed on small business.
NEW SECTION. Sec. 404. A new section is added to chapter 19.85 RCW to read as follows:
Unless so requested by a majority vote of the joint administrative rules review committee under RCW 19.85.030, an agency is not required to comply with this chapter when adopting any rule solely for the purpose of conformity or compliance, or both, with federal statute or regulations. In lieu of the statement required under RCW 19.85.030, the agency shall file a statement citing, with specificity, the federal statute or regulation with which the rule is being adopted to conform or comply, and describing the consequences to the state if the rule is not adopted.
NEW SECTION. Sec. 405. RCW 19.85.060 and 1989 c 374 s 5 are each repealed.
PART V
STRENGTHENED LEGISLATIVE OVERSIGHT
NEW SECTION. Sec. 501. A new section is added to chapter 34.05 RCW under the subchapter heading Part VI to read as follows:
The joint administrative rules review committee shall not render a decision on a rule unless a quorum is present. A quorum shall consist of at least five members of the committee. Once a quorum is established, a majority of the quorum may render any decision except a suspension recommendation. A recommendation to suspend a rule under RCW 34.05.640 shall require a majority vote of the entire membership of the rules review committee.
NEW SECTION. Sec. 502. A new section is added to chapter 34.05 RCW under the subchapter heading Part VI to read as follows:
(1) Any person may petition the rules review committee for a review of that rule. Within thirty days of the receipt of the petition, the rules review committee shall acknowledge receipt of the petition and describe any initial action taken. If the rules review committee rejects the petition, a written statement of the reasons for rejection shall be included.
(2) Within ninety days of receipt of the petition, the rules review committee shall make a final decision on the rule for which the petition for review was not previously rejected.
NEW SECTION. Sec. 503. A new section is added to chapter 34.05 RCW under the subchapter heading Part VI to read as follows:
Any individual employed or holding office in any department or agency of state government may submit rules warranting review to the rules review committee. Any such state employee is protected under chapter 42.40 RCW.
Sec. 504. RCW 34.05.660 and 1988 c 288 s 606 are each amended to read as follows:
(1) Except as provided in subsection (2) of this section, it is the express policy of the legislature that establishment of procedures for review of administrative rules by the legislature and the notice of objection required by RCW 34.05.630(2) and 34.05.640(2) in no way serves to establish a presumption as to the legality or constitutionality of a rule in any subsequent judicial proceedings interpreting such rules.
(2) If the joint administrative rules review committee recommends to the governor that an existing rule be suspended because it does not conform with the intent of the legislature, the recommendation shall establish a rebuttable presumption in any proceeding challenging the validity of the rule that the rule is invalid. The burden of demonstrating the rule's validity is then on the adopting agency.
NEW SECTION. Sec. 505. A new section is added to chapter 34.05 RCW under the subchapter heading Part VI to read as follows:
(1) The rules review committee may make reports from time to time to the members of the legislature and to the public with respect to any of its findings or recommendations. The committee shall keep complete minutes of its meetings.
(2) The committee may establish ad hoc advisory boards, including but not limited to, ad hoc economics or science advisory boards to assist the committee in its rules review functions.
(3) The committee may hire staff as needed to perform functions under this chapter.
NEW SECTION. Sec. 506. A new section is added to chapter 34.05 RCW under the subchapter heading Part VI to read as follows:
In the discharge of any duty imposed under this chapter, the rules review committee may examine and inspect all properties, equipment, facilities, files, records, and accounts of any state office, department, institution, board, committee, commission, or agency, and administer oaths, issue subpoenas, compel the attendance of witnesses and the production of any papers, books, accounts, documents, and testimony, and cause the deposition of witnesses, either residing within or without the state, to be taken in the manner prescribed by law for taking depositions in civil actions in the superior courts.
NEW SECTION. Sec. 507. A new section is added to chapter 34.05 RCW under the subchapter heading Part VI to read as follows:
In case of the failure on the part of any person to comply with any subpoena issued in behalf of the rules review committee, or on the refusal of any witness to testify to any matters regarding which he or she may be lawfully interrogated, it is the duty of the superior court of any county, or of the judge thereof, on application of the committee, to compel obedience by proceedings for contempt, as in the case of disobedience of the requirements of a subpoena issued from the court or a refusal to testify in the court.
Sec. 508. RCW 42.40.010 and 1982 c 208 s 1 are each amended to read as follows:
It is the policy of the legislature that employees should be encouraged to disclose, to the extent not expressly prohibited by law, improper governmental actions, and it is the intent of the legislature to protect the rights of state employees making these disclosures. It is also the policy of the legislature that employees should be encouraged to identify rules warranting review or provide information to the rules review committee, and it is the intent of the legislature to protect the rights of these employees.
Sec. 509. RCW 42.40.020 and 1992 c 118 s 1 are each amended to read as follows:
As used in this chapter, the terms defined in this section shall have the meanings indicated unless the context clearly requires otherwise.
(1) "Auditor" means the office of the state auditor.
(2) "Employee" means any individual employed or holding office in any department or agency of state government.
(3)(a) "Improper governmental action" means any action by an employee:
(i) Which is undertaken in the performance of the employee's official duties, whether or not the action is within the scope of the employee's employment; and
(ii) Which is in violation of any state law or rule, is an abuse of authority, is of substantial and specific danger to the public health or safety, or is a gross waste of public funds.
(b) "Improper governmental action" does not include personnel actions including but not limited to employee grievances, complaints, appointments, promotions, transfers, assignments, reassignments, reinstatements, restorations, reemployments, performance evaluations, reductions in pay, dismissals, suspensions, demotions, violations of the state civil service law, alleged labor agreement violations, reprimands, or any action which may be taken under chapter 41.06 ((or 28B.16)) RCW, or other disciplinary action except as provided in RCW 42.40.030.
(4) "Use of official authority or influence" includes taking, directing others to take, recommending, processing, or approving any personnel action such as an appointment, promotion, transfer, assignment, reassignment, reinstatement, restoration, reemployment, performance evaluation, or any adverse action under chapter 41.06 ((or 28B.16)) RCW, or other disciplinary action.
(5) "Whistleblower" means an employee who in good faith reports alleged improper governmental action to the auditor, initiating an investigation under RCW 42.40.040. For purposes of the provisions of this chapter and chapter 49.60 RCW relating to reprisals and retaliatory action, the term "whistleblower" also means: (a) An employee who in good faith provides information to the auditor in connection with an investigation under RCW 42.40.040 and an employee who is believed to have reported alleged improper governmental action to the auditor or to have provided information to the auditor in connection with an investigation under RCW 42.40.040 but who, in fact, has not reported such action or provided such information; or (b) an employee who in good faith identifies rules warranting review or provides information to the rules review committee, and an employee who is believed to have identified rules warranting review or provided information to the rules review committee but who, in fact, has not done so.
Sec. 510. RCW 42.40.030 and 1989 c 284 s 2 are each amended to read as follows:
(1) An employee shall not directly or indirectly use or attempt to use the employee's official authority or influence for the purpose of intimidating, threatening, coercing, commanding, influencing, or attempting to intimidate, threaten, coerce, command, or influence any individual for the purpose of interfering with the right of the individual to: (a) Disclose to the auditor (or representative thereof) information concerning improper governmental action; or (b) identify rules warranting review or provide information to the rules review committee.
(2) Nothing in this section authorizes an individual to disclose information otherwise prohibited by law.
NEW SECTION. Sec. 511. Before the 1996 legislative session, the appropriate standing committees of the legislature shall study alternative means to provide effective, objective oversight of state agency rule making, and make a recommendation whether the joint administrative rules review committee should be continued
or replaced.
PART VI
TECHNICAL ASSISTANCE
NEW SECTION. Sec. 601. The legislature finds that, due to the volume and complexity of laws and rules it is appropriate for regulatory agencies to adopt programs and policies that encourage voluntary compliance by those affected by specific rules. The legislature recognizes that a cooperative partnership between agencies and regulated parties that emphasizes education and assistance before the imposition of penalties will achieve greater compliance with laws and rules and that most individuals and businesses who are subject to regulation will attempt to comply with the law, particularly if they are given sufficient information. In this context, enforcement should assure that the majority of a regulated community that complies with the law are not placed at a competitive disadvantage and that a continuing failure to comply that is within the control of a party who has received technical assistance is considered by an agency when it determines the amount of any civil penalty that is issued.
NEW SECTION. Sec. 602. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
(1) "Civil penalty" means a monetary penalty administratively issued by a regulatory agency for noncompliance with state or federal law or rules. The term does not include any criminal penalty, damage assessments, wages, premiums, or taxes owed, or interest or late fees on any existing obligation.
(2) "Regulatory agency" means an agency as defined in RCW 34.05.010 that has the authority to issue civil penalties. The term does not include the state patrol or any institution of higher education as defined in RCW 28B.10.016.
(3) "Technical assistance" includes:
(a) Information on the laws, rules, and compliance methods and technologies applicable to the regulatory agency's programs;
(b) Information on methods to avoid compliance problems;
(c) Assistance in applying for permits; and
(d) Information on the mission, goals, and objectives of the program.
NEW SECTION. Sec. 603. All regulatory agencies shall develop programs to encourage voluntary compliance by providing technical assistance consistent with statutory requirements. The programs shall include but are not limited to technical assistance visits, printed information, information and assistance by telephone, training meetings, and other appropriate methods to provide technical assistance. In addition, all regulatory agencies shall provide upon request a list of organizations, including private companies, that provide technical assistance. This list shall be compiled by the agencies from information submitted by the organizations and shall not constitute an endorsement by an agency of any organization.
NEW SECTION. Sec. 604. (1) For the purposes of this chapter, a technical assistance visit is a visit by a regulatory agency to a facility, business, or other location that:
(a) Has been requested or is voluntarily accepted; and
(b) Is declared by the regulatory agency at the beginning of the visit to be a technical assistance visit.
(2) A technical assistance visit also includes a consultative visit pursuant to RCW 49.17.250.
(3) During a technical assistance visit, or within a reasonable time thereafter, a regulatory agency shall inform the owner or operator of the facility of any violations of law or agency rules identified by the agency as follows:
(a) A description of the condition that is not in compliance and a specific citation to the applicable law or rule;
(b) A statement of what is required to achieve compliance;
(c) The date by which the agency requires compliance to be achieved;
(d) Notice of the means to contact any technical assistance services provided by the agency or others; and
(e) Notice of when, where, and to whom a request to extend the time to achieve compliance for good cause may be filed with the agency.
NEW SECTION. Sec. 605. The owner and operator shall be given a reasonable period of time to correct violations identified during a technical assistance visit before any civil penalty provided for by law is imposed for those violations. A regulatory agency may revisit a facility, business, or other location after a technical assistance visit and a reasonable period of time has passed to correct violations identified by the agency in writing and issue civil penalties as provided for by law for any uncorrected violations.
NEW SECTION. Sec. 606. A regulatory agency that observes a violation during a technical assistance visit may issue a civil penalty as provided for by law if: (1) The individual or business has previously been subject to an enforcement action for the same or similar type of violation of the same statute or rule or has been given previous notice of the same or similar type of violation of the same statute or rule; or (2) the issue involves sales taxes due to the state and the individual or business is not remitting previously collected sales taxes to the state; or (3) the violation has a probability of placing a person in danger of death or bodily harm, has a probability of causing more than minor environmental harm, or has a probability of causing physical damage to the property of another in an amount exceeding one thousand dollars.
NEW SECTION. Sec. 607. (1) If in the course of any site inspection or visit that is not a technical assistance visit, the department of ecology becomes aware of conditions that are not in compliance with applicable laws and rules enforced by the department and are not subject to civil penalties as provided for in section 608 of this act, the department may issue a notice of correction to the responsible party that shall include:
(a) A description of the condition that is not in compliance and a specific citation to the applicable law or rule;
(b) A statement of what is required to achieve compliance;
(c) The date by which the department requires compliance to be achieved;
(d) Notice of the means to contact any technical assistance services provided by the department or others; and
(e) Notice of when, where, and to whom a request to extend the time to achieve compliance for good cause may be filed with the department.
(2) A notice of correction is not a formal enforcement action, is not subject to appeal, and is a public record.
(3) If the department issues a notice of correction, it shall not issue a civil penalty for the violations identified in the notice of correction unless the responsible party fails to comply with the notice.
NEW SECTION. Sec. 608. The department of ecology may issue a civil penalty provided for by law without first issuing a notice of correction if: (1) The person has previously been subject to an enforcement action for the same or similar type of violation of the same statute or rule or has been given previous notice of the same or similar type of violation of the same statute or rule; or (2) compliance is not achieved by the date established by the department in a previously issued notice of correction, if the department has responded to any request for review of such date by reaffirming the original date or establishing a new date; or (3) the violation has a probability of placing a person in danger of death or bodily harm, has a probability of causing more than minor environmental harm, or has a probability of causing physical damage to the property of another in an amount exceeding one thousand dollars.
NEW SECTION. Sec. 609. The provisions of sections 607 and 608 of this act affecting civil penalties issued by the department of ecology shall not apply to civil penalties for negligent discharge of oil as authorized under RCW 90.56.330 or to civil penalties as authorized under RCW 90.03.600 for unlawful use of water in violation of RCW 90.03.250 or 90.44.050.
NEW SECTION. Sec. 610. (1) Following a consultative visit pursuant to RCW 49.17.250, the department of labor and industries shall issue a report to the employer that the employer shall make available to its employees. The report shall contain:
(a) A description of the condition that is not in compliance and a specific citation to the applicable law or rule;
(b) A statement of what is required to achieve compliance;
(c) The date by which the department requires compliance to be achieved;
(d) Notice of means to contact technical assistance services provided by the department; and
(e) Notice of when, where, and to whom a request to extend the time to achieve compliance for good cause may be filed with the department.
(2) Following a compliance inspection pursuant to RCW 49.17.120, the department of labor and industries shall issue a citation for violations of industrial safety and health standards. The citation shall not assess a penalty if the violations:
(a) Are determined not to be of a serious nature;
(b) Have not been previously cited;
(c) Are not willful; and
(d) Do not have a mandatory penalty under chapter 49.17 RCW.
NEW SECTION. Sec. 611. (1) If in the course of any inspection or visit that is not a technical assistance visit, the department of agriculture, fish and wildlife, health, licensing, or natural resources becomes aware of conditions that are not in compliance with applicable laws and rules enforced by the department and are not subject to civil penalties as provided for in section 612 of this act, the department may issue a notice of correction to the responsible party that shall include:
(a) A description of the condition that is not in compliance and a specific citation to the applicable law or rule;
(b) A statement of what is required to achieve compliance;
(c) The date by which the department requires compliance to be achieved;
(d) Notice of the means to contact any technical assistance services provided by the department or others; and
(e) Notice of when, where, and to whom a request to extend the time to achieve compliance for good cause may be filed with the department.
(2) A notice of correction is not a formal enforcement action, is not subject to appeal, and is a public record.
(3) If the department issues a notice of correction, it shall not issue a civil penalty for the violations identified in the notice of correction unless the responsible party fails to comply with the notice.
NEW SECTION. Sec. 612. The department of agriculture, fish and wildlife, health, licensing, or natural resources may issue a civil penalty provided for by law without first issuing a notice of correction if: (1) The person has previously been subject to an enforcement action for the same or similar type of violation of the same statute or rule or has been given previous notice of the same or similar type of violation of the same statute or rule; or (2) compliance is not achieved by the date established by the department in a previously issued notice of correction, if the department has responded to any request for review of such date by reaffirming the original date or establishing a new date; (3) the violation has a probability of placing a person in danger of death or bodily harm, has a probability of causing more than minor environmental harm, or has a probability of causing physical damage to the property of another in an amount exceeding one thousand dollars; or (4) the violation was committed by a business that employed fifty or more employees on at least one day in each of the preceding twelve months. In addition, the department of fish and wildlife may issue a civil penalty provided for by law without first issuing a notice of correction for a violation of any rule dealing with seasons, catch or bag limits, gear types, or geographical areas for fish or wildlife removal, reporting, or disposal.
NEW SECTION. Sec. 613. The date for compliance established by the department of ecology, labor and industries, agriculture, fish and wildlife, health, licensing, or natural resources pursuant to section 607, 610, or 611 of this act respectively shall provide for a reasonable time to achieve compliance. Any person receiving a notice of correction pursuant to section 607 or 611 of this act or a report or citation pursuant to section 610 of this act may request an extension of time to achieve compliance for good cause from the issuing department. Requests shall be submitted to the issuing department and responded to by the issuing department in writing in accordance with procedures specified by the issuing department in the notice, report, or citation.
NEW SECTION. Sec. 614. The departments of revenue and labor and industries and the employment security department shall undertake an educational program directed at those who have the most difficulty in determining their tax or premium liability. The departments may rely on information from internal data, trade associations, and businesses to determine which entities should be selected. The educational programs may include, but not be limited to, targeted informational fact sheets, self-audits, or workshops, and may be presented individually by the agency or in conjunction with other agencies.
NEW SECTION. Sec. 615. The department of revenue, the department of labor and industries in respect to its duties in Title 51 RCW, and the employment security department shall develop and administer a pilot voluntary audit program. Voluntary audits can be requested by businesses from any of these agencies according to guidelines established by each agency. No penalty assessments may be made against participants in such a program except when the agency determines that either a good faith effort has not been made by the taxpayer or premium payer to comply with the law or that the taxpayer has failed to remit previously collected sales taxes to the state. The persons conducting the voluntary audit shall provide the business undergoing the voluntary audit an audit report that describes errors or omissions found and future reporting instructions. This program does not relieve a business from past or future tax or premium obligations.
NEW SECTION. Sec. 616. The departments of revenue and labor and industries and the employment security department shall each review the penalties it issues related to taxes or premiums to determine if they are consistent and provide for waivers in appropriate circumstances. Each department shall report the results of its review to the legislature no later than December 1, 1995.
NEW SECTION. Sec. 617. Nothing in this chapter obligates a regulatory agency to conduct a technical assistance visit. The state and officers or employees of the state shall not be liable for damages to a person to the extent that liability is asserted to arise from providing technical assistance, or if liability is asserted to arise from the failure of the state or officers or employees of the state to provide technical assistance. This chapter does not limit the authority of any regulatory agency to take any enforcement action, other than a civil penalty, authorized by law. This chapter shall not limit a regulatory agency's authority to issue a civil penalty as authorized by law based upon a person's failure to comply with specific terms and conditions of any permit or license issued by the agency to that person.
NEW SECTION. Sec. 618. Agency rules, guidelines, and procedures necessary to implement sections 601 through 615, 617, and 619 through 621 of this act shall be established and implemented expeditiously and not later than July 1, 1996.
NEW SECTION. Sec. 619. If a regulatory agency determines any part of this chapter to be in conflict with federal law or program requirements, in conflict with federal requirements that are a prescribed condition to the allocation of federal funds to the state, or in conflict with the requirements for eligibility of employers in this state for federal unemployment tax credits, the conflicting part of this chapter shall be inoperative solely to the extent of the conflict. Any rules under this chapter shall meet federal requirements that are a necessary condition to the receipt of federal funds by the state or the granting of federal unemployment tax credits to employers in this state.
NEW SECTION. Sec. 620. If notified by responsible federal officials of any conflict of this chapter with federal law or program requirements or with federal requirements that are a prescribed condition to the allocation of federal funds to the state, the regulatory agency notified of the conflict shall actively seek to resolve the conflict. If the agency determines that the conflict cannot be resolved without loss of benefits or authority to the state, the agency shall notify the governor, the president of the senate, and the speaker of the house of representatives in writing within thirty days of making that determination.
NEW SECTION. Sec. 621. (1) By January 31, 1996, and by January 31st of each even-numbered year thereafter, the office of financial management, after consulting with state regulatory agencies, counties, and cities, and business, labor, and environmental organizations, shall report to the governor and the legislature regarding the effects of sections 601 through 615, 617, and 619 through 621 of this act on the regulatory system in this state. The report shall document:
(a) Technical assistance, including but not limited to technical assistance visits, provided by state regulatory agencies consistent with this chapter;
(b) Any rules adopted, guidelines developed, or training conducted to implement this chapter;
(c) Any changes in the appropriation, allocation, or expenditure of regulatory agency resources to implement this chapter;
(d) Any legal action against state regulatory agencies for any alleged failure to comply with this chapter, the costs to the state of the action, and the result;
(e) The extent to which this chapter has resulted in either an increase or decrease in regulatory agency use of civil penalties;
(f) The extent to which this chapter has contributed to any change in voluntary compliance with state statutes or rules;
(g) The extent to which this chapter has improved the acceptability or effectiveness of state regulatory procedures; and
(h) Any other information considered by the office of financial management to be useful in evaluating the effect of this chapter.
(2) This section shall expire June 30, 2000.
NEW SECTION. Sec. 622. A new section is added to chapter 43.12 RCW to read as follows:
Enforcement action taken after the effective date of this section by the commissioner of public lands shall be in accordance with sections 611 and 612 of this act.
NEW SECTION. Sec. 623. A new section is added to chapter 43.23 RCW to read as follows:
Enforcement action taken after the effective date of this section by the director or the department of agriculture shall be in accordance with sections 611 and 612 of this act.
NEW SECTION. Sec. 624. A new section is added to chapter 43.24 RCW to read as follows:
Enforcement action taken after the effective date of this section by the director or the department of licensing shall be in accordance with sections 611 and 612 of this act.
NEW SECTION. Sec. 625. A new section is added to chapter 43.30 RCW to read as follows:
Enforcement action taken after the effective date of this section by the commissioner or supervisor of public lands shall be in accordance with sections 611 and 612 of this act.
NEW SECTION. Sec. 626. A new section is added to chapter 43.70 RCW to read as follows:
Enforcement action taken after the effective date of this section by the director or the department shall be in accordance with sections 611 and 612 of this act.
NEW SECTION. Sec. 627. A new section is added to chapter 43.300 RCW to read as follows:
Enforcement action taken after the effective date of this section by the director or the department shall be in accordance with sections 611 and 612 of this act.
Sec. 628. RCW 18.104.155 and 1993 c 387 s 21 are each amended to read as follows:
(1) Except as provided in sections 607 through 609 and 617 of this act, the department of ecology may assess a civil penalty for a violation of this chapter or rules or orders of the department adopted or issued pursuant to it.
(2) There shall be three categories of violations: Minor, serious, and major.
(a) A minor violation is a violation that does not seriously threaten public health, safety, and the environment. Minor violations include, but are not limited to:
(i) Failure to submit completed start cards and well reports within the required time;
(ii) Failure to submit variance requests before construction;
(iii) Failure to submit well construction fees;
(iv) Failure to place a well identification tag on a new well; and
(v) Minor or reparable construction problems.
(b) A serious violation is a violation that poses a critical or serious threat to public health, safety, and the environment. Serious violations include, but are not limited to:
(i) Improper well construction;
(ii) Intentional and improper location or siting of a well;
(iii) Construction of a well without a required permit;
(iv) Violation of decommissioning requirements;
(v) Repeated minor violations; or
(vi) Construction of a well by a person whose license has expired or has been suspended for not more than ninety days.
(c) A major violation is the construction of a well by a person:
(i) Without a license; or
(ii) After the person's license has been suspended for more than ninety days or revoked.
(3)(a) The penalty for a minor violation shall be not less than one hundred dollars and not more than five hundred dollars. Before the imposition of a penalty for a minor violation, the department may issue an order of noncompliance to provide an opportunity for mitigation or compliance.
(b) The penalty for a serious violation shall be not less than five hundred dollars and not more than five thousand dollars.
(c) The penalty for a major violation shall be not less than five thousand dollars and not more than ten thousand dollars.
(4) In determining the appropriate penalty under subsection (3) of this section the department shall consider whether the person:
(a) Has demonstrated a general disregard for public health and safety through the number and magnitude of the violations;
(b) Has demonstrated a disregard for the well construction laws or rules in repeated or continuous violations; or
(c) Knew or reasonably should have known of circumstances that resulted in the violation.
(5) Penalties provided for in this section shall be imposed pursuant to RCW 43.21B.300. The department shall provide thirty days written notice of a violation as provided in RCW 43.21B.300(3).
(6) For informational purposes, a copy of the notice of violation, resulting from the improper construction of a well, that is sent to a water well contractor or water well construction operator, shall also be sent by the department to the well owner.
(7) Penalties collected by the department pursuant to this section shall be deposited in the reclamation account established by chapter 89.16 RCW. Subject to legislative appropriation, the penalties may be spent only for purposes related to the restoration and enhancement of ground water resources in the state.
Sec. 629. RCW 49.17.180 and 1991 c 108 s 1 are each amended to read as follows:
(1) Except as provided in section 610 of this act, any employer who willfully or repeatedly violates the requirements of RCW 49.17.060, of any safety or health standard promulgated under the authority of this chapter, of any existing rule or regulation governing the conditions of employment promulgated by the department, or of any order issued granting a variance under RCW 49.17.080 or 49.17.090 may be assessed a civil penalty not to exceed seventy thousand dollars for each violation. A minimum penalty of five thousand dollars shall be assessed for a willful violation.
(2) Any employer who has received a citation for a serious violation of the requirements of RCW 49.17.060, of any safety or health standard promulgated under the authority of this chapter, of any existing rule or regulation governing the conditions of employment promulgated by the department, or of any order issued granting a variance under RCW 49.17.080 or 49.17.090 as determined in accordance with subsection (6) of this section, shall be assessed a civil penalty not to exceed seven thousand dollars for each such violation.
(3) Any employer who has received a citation for a violation of the requirements of RCW 49.17.060, of any safety or health standard promulgated under this chapter, of any existing rule or regulation governing the conditions of employment promulgated by the department, or of any order issued granting a variance under RCW 49.17.080 or 49.17.090, where such violation is specifically determined not to be of a serious nature as provided in subsection (6) of this section, may be assessed a civil penalty not to exceed seven thousand dollars for each such violation, unless such violation is determined to be de minimis.
(4) Any employer who fails to correct a violation for which a citation has been issued under RCW 49.17.120 or 49.17.130 within the period permitted for its correction, which period shall not begin to run until the date of the final order of the board of industrial insurance appeals in the case of any review proceedings under this chapter initiated by the employer in good faith and not solely for delay or avoidance of penalties, may be assessed a civil penalty of not more than seven thousand dollars for each day during which such failure or violation continues.
(5) Any employer who violates any of the posting requirements of this chapter, or any of the posting requirements of rules promulgated by the department pursuant to this chapter related to employee or employee representative's rights to notice, including but not limited to those employee rights to notice set forth in RCW 49.17.080, 49.17.090, 49.17.120, 49.17.130, 49.17.220(1) and 49.17.240(2), shall be assessed a penalty not to exceed seven thousand dollars for each such violation. Any employer who violates any of the posting requirements for the posting of informational, educational, or training materials under the authority of RCW 49.17.050(7), may be assessed a penalty not to exceed seven thousand dollars for each such violation.
(6) For the purposes of this section, a serious violation shall be deemed to exist in a work place if there is a substantial probability that death or serious physical harm could result from a condition which exists, or from one or more practices, means, methods, operations, or processes which have been adopted or are in use in such work place, unless the employer did not, and could not with the exercise of reasonable diligence, know of the presence of the violation.
(7) The director, or his authorized representatives, shall have authority to assess all civil penalties provided in this section, giving due consideration to the appropriateness of the penalty with respect to the number of affected employees of the employer being charged, the gravity of the violation, the size of the employer's business, the good faith of the employer, and the history of previous violations.
(8) Civil penalties imposed under this chapter shall be paid to the director for deposit in the supplemental pension fund established by RCW 51.44.033. Civil penalties may be recovered in a civil action in the name of the department brought in the superior court of the county where the violation is alleged to have occurred, or the department may utilize the procedures for collection of civil penalties as set forth in RCW 51.48.120 through 51.48.150.
Sec. 630. RCW 70.94.431 and 1991 c 199 s 311 are each amended to read as follows:
(1) Except as provided in sections 607 through 609 and 617 of this act, and in addition to or as an alternate to any other penalty provided by law, any person who violates any of the provisions of chapter 70.94 RCW, chapter 70.120 RCW, or any of the rules in force under such chapters may incur a civil penalty in an amount not to exceed ten thousand dollars per day for each violation. Each such violation shall be a separate and distinct offense, and in case of a continuing violation, each day's continuance shall be a separate and distinct violation.
Any person who fails to take action as specified by an order issued pursuant to this chapter shall be liable for a civil penalty of not more than ten thousand dollars for each day of continued noncompliance.
(2) Penalties incurred but not paid shall accrue interest, beginning on the ninety-first day following the date that the penalty becomes due and payable, at the highest rate allowed by RCW 19.52.020 on the date that the penalty becomes due and payable. If violations or penalties are appealed, interest shall not begin to accrue until the thirty-first day following final resolution of the appeal.
The maximum penalty amounts established in this section may be increased annually to account for inflation as determined by the state office of the economic and revenue forecast council.
(3) Each act of commission or omission which procures, aids or abets in the violation shall be considered a violation under the provisions of this section and subject to the same penalty. The penalties provided in this section shall be imposed pursuant to RCW 43.21B.300.
(4) All penalties recovered under this section by the department shall be paid into the state treasury and credited to the air pollution control account established in RCW 70.94.015 or, if recovered by the authority, shall be paid into the treasury of the authority and credited to its funds. If a prior penalty for the same violation has been paid to a local authority, the penalty imposed by the department under subsection (1) of this section shall be reduced by the amount of the payment.
(5) To secure the penalty incurred under this section, the state or the authority shall have a lien on any vessel used or operated in violation of this chapter which shall be enforced as provided in RCW 60.36.050.
(6) Public or private entities that are recipients or potential recipients of department grants, whether for air quality related activities or not, may have such grants rescinded or withheld by the department for failure to comply with provisions of this chapter.
(7) In addition to other penalties provided by this chapter, persons knowingly under-reporting emissions or other information used to set fees, or persons required to pay emission or permit fees who are more than ninety days late with such payments may be subject to a penalty equal to three times the amount of the original fee owed.
(8) By January 1, 1992, the department shall develop rules for excusing excess emissions from enforcement action if such excess emissions are unavoidable. The rules shall specify the criteria and procedures for the department and local air authorities to determine whether a period of excess emissions is excusable in accordance with the state implementation plan.
Sec. 631. RCW 70.105.080 and 1987 c 109 s 12 are each amended to read as follows:
(1) Except as provided in sections 607 through 609 and 617 of this act, every person who fails to comply with any provision of this chapter or of the rules adopted thereunder shall be subjected to a penalty in an amount of not more than ten thousand dollars per day for every such violation. Each and every such violation shall be a separate and distinct offense. In case of continuing violation, every day's continuance shall be a separate and distinct violation. Every person who, through an act of commission or omission, procures, aids, or abets in the violation shall be considered to have violated the provisions of this section and shall be subject to the penalty herein provided.
(2) The penalty provided for in this section shall be imposed pursuant to the procedures in RCW 43.21B.300.
Sec. 632. RCW 70.132.050 and 1982 c 113 s 5 are each amended to read as follows:
Except as provided in sections 607 through 609 and 617 of this act, any person who violates any provision of this chapter or any rule adopted under this chapter is subject to a civil penalty not exceeding five hundred dollars for each violation. Each day of a continuing violation is a separate violation.
Sec. 633. RCW 70.138.040 and 1987 c 528 s 4 are each amended to read as follows:
(1) Except as provided in sections 607 through 609 and 617 of this act, any person who violates any provision of a department regulation or regulatory order relating to the management of special incinerator ash shall incur in addition to any other penalty provided by law, a penalty in an amount up to ten thousand dollars a day for every such violation. Each and every such violation shall be a separate and distinct offense. ((If [In])) In case of continuing violation, every day's continuance shall be a separate and distinct violation. Every person who, through an act of commission or omission, procures, aids, or abets in the violation shall be considered to have violated the provisions of this section and shall be subject to the penalty herein provided.
(2) The penalty provided for in this section shall be imposed by a notice in writing, either by certified mail with return receipt requested or by personal service, to the person incurring the same from the department, describing the violation with reasonable particularity. Within fifteen days after the notice is received, the person incurring the penalty may apply in writing to the department for the remission or mitigation of such penalty. Upon receipt of the application, the department may remit or mitigate the penalty upon whatever terms the department in its discretion deems proper, giving consideration to the degree of hazard associated with the violation, provided the department deems such remission or mitigation to be in the best interests of carrying out the purposes of this chapter. The department shall have authority to ascertain the facts regarding all such applications in such reasonable manner and under such rules as it may deem proper.
(3) Any penalty imposed by this section shall become due and payable thirty days after receipt of a notice imposing the same unless application for remission or mitigation is made or petition for review by the hearings board is filed. When such an application for remission or mitigation is made, any penalty incurred pursuant to this section shall become due and payable thirty days after receipt of notice setting forth the disposition of such application.
(4) If the amount of any penalty is not paid to the department within thirty days after it becomes due and payable, the attorney general, upon the request of the director, shall bring an action in the name of the state of Washington in the superior court of Thurston county, or any county in which such violator may do business, to recover such penalty. In all such actions, the procedure and rules of evidence shall be the same as an ordinary civil action except as otherwise provided in this chapter.
Sec. 634. RCW 86.16.081 and 1987 c 523 s 8 are each amended to read as follows:
(1) Except as provided in sections 607 through 609 and 617 of this act, the attorney general or the attorney for the local government shall bring such injunctive, declaratory, or other actions as are necessary to ensure compliance with this chapter.
(2) Any person who fails to comply with this chapter shall also be subject to a civil penalty not to exceed one thousand dollars for each violation. Each violation or each day of noncompliance shall constitute a separate violation.
(3) The penalty provided for in this section shall be imposed by a notice in writing, either by certified mail with return receipt requested or by personal service, to the person incurring the same from the department or local government, describing the violation with reasonable particularity and ordering the act or acts constituting the violation or violations to cease and desist or, in appropriate cases, requiring necessary corrective action to be taken within a specific and reasonable time.
(4) Any penalty imposed pursuant to this section by the department shall be subject to review by the pollution control hearings board. Any penalty imposed pursuant to this section by local government shall be subject to review by the local government legislative authority. Any penalty jointly imposed by the department and local government shall be appealed to the pollution control hearings board.
Sec. 635. RCW 90.03.600 and 1987 c 109 s 157 are each amended to read as follows:
Except as provided in sections 607 through 609 and 617 of this act, the power is granted to the department of ecology to levy civil penalties of up to one hundred dollars per day for violation of any of the provisions of this chapter and chapters 43.83B, 90.22, and 90.44 RCW, and rules, permits, and similar documents and regulatory orders of the department of ecology adopted or issued pursuant to such chapters. The procedures of RCW 90.48.144 shall be applicable to all phases of the levying of a penalty as well as review and appeal of the same.
Sec. 636. RCW 90.48.144 and 1992 c 73 s 27 are each amended to read as follows:
Except as provided in sections 607 through 609 and 617 of this act, every person who:
(1) Violates the terms or conditions of a waste discharge permit issued pursuant to RCW 90.48.180 or 90.48.260 through 90.48.262, or
(2) Conducts a commercial or industrial operation or other point source discharge operation without a waste discharge permit as required by RCW 90.48.160 or 90.48.260 through 90.48.262, or
(3) Violates the provisions of RCW 90.48.080, or other sections of this chapter or chapter 90.56 RCW or rules or orders adopted or issued pursuant to either of those chapters, shall incur, in addition to any other penalty as provided by law, a penalty in an amount of up to ten thousand dollars a day for every such violation. Each and every such violation shall be a separate and distinct offense, and in case of a continuing violation, every day's continuance shall be and be deemed to be a separate and distinct violation. Every act of commission or omission which procures, aids or abets in the violation shall be considered a violation under the provisions of this section and subject to the penalty herein provided for. The penalty amount shall be set in consideration of the previous history of the violator and the severity of the violation's impact on public health and/or the environment in addition to other relevant factors. The penalty herein provided for shall be imposed pursuant to the procedures set forth in RCW 43.21B.300.
Sec. 637. RCW 90.58.210 and 1986 c 292 s 4 are each amended to read as follows:
(1) Except as provided in sections 607 through 609 and 617 of this act, the attorney general or the attorney for the local government shall bring such injunctive, declaratory, or other actions as are necessary to insure that no uses are made of the shorelines of the state in conflict with the provisions and programs of this chapter, and to otherwise enforce the provisions of this chapter.
(2) Any person who shall fail to conform to the terms of a permit issued under this chapter or who shall undertake development on the shorelines of the state without first obtaining any permit required under this chapter shall also be subject to a civil penalty not to exceed one thousand dollars for each violation. Each permit violation or each day of continued development without a required permit shall constitute a separate violation.
(3) The penalty provided for in this section shall be imposed by a notice in writing, either by certified mail with return receipt requested or by personal service, to the person incurring the same from the department or local government, describing the violation with reasonable particularity and ordering the act or acts constituting the violation or violations to cease and desist or, in appropriate cases, requiring necessary corrective action to be taken within a specific and reasonable time.
(4) Within thirty days after the notice is received, the person incurring the penalty may apply in writing to the department for remission or mitigation of such penalty. Upon receipt of the application, the department or local government may remit or mitigate the penalty upon whatever terms the department or local government in its discretion deems proper. Any penalty imposed pursuant to this section by the department shall be subject to review by the shorelines hearings board. Any penalty imposed pursuant to this section by local government shall be subject to review by the local government legislative authority. Any penalty jointly imposed by the department and local government shall be appealed to the shorelines hearings board.
Sec. 638. RCW 90.58.560 and 1983 c 138 s 2 are each amended to read as follows:
(1) Except as provided in sections 607 through 609 and 617 of this act, a person who violates RCW 90.58.550, or any rule adopted thereunder, is subject to a penalty in an amount of up to five thousand dollars a day for every such violation. Each and every such violation shall be a separate and distinct offense, and in case of a continuing violation, every day's continuance shall be and be deemed to be a separate and distinct violation. Every act of commission or omission which procures, aids or abets in the violation shall be considered a violation under the provisions of this section and subject to the penalty provided for in this section.
(2) The penalty shall be imposed by a notice in writing, either by certified mail with return receipt requested or by personal service, to the person incurring the penalty from the director or the director's representative describing such violation with reasonable particularity. The director or the director's representative may, upon written application therefor received within fifteen days after notice imposing any penalty is received by the person incurring the penalty, and when deemed to carry out the purposes of this chapter, remit or mitigate any penalty provided for in this section upon such terms as he or she deems proper, and shall have authority to ascertain the facts upon all such applications in such manner and under such regulations as he or she may deem proper.
(3) Any person incurring any penalty under this section may appeal the penalty to the hearings board as provided for in chapter 43.21B RCW. Such appeals shall be filed within thirty days of receipt of notice imposing any penalty unless an application for remission or mitigation is made to the department. When an application for remission or mitigation is made, such appeals shall be filed within thirty days of receipt of notice from the director or the director's representative setting forth the disposition of the application. Any penalty imposed under this section shall become due and payable thirty days after receipt of a notice imposing the same unless application for remission or mitigation is made or an appeal is filed. When an application for remission or mitigation is made, any penalty incurred hereunder shall become due and payable thirty days after receipt of notice setting forth the disposition of the application unless an appeal is filed from such disposition. Whenever an appeal of any penalty incurred under this section is filed, the penalty shall become due and payable only upon completion of all review proceedings and the issuance of a final order confirming the penalty in whole or in part.
(4) If the amount of any penalty is not paid to the department within thirty days after it becomes due and payable, the attorney general, upon the request of the director, shall bring an action in the name of the state of Washington in the superior court of Thurston county or of any county in which such violator may do business, to recover such penalty. In all such actions the procedure and rules of evidence shall be the same as an ordinary civil action except as otherwise in this chapter provided. All penalties recovered under this section shall be paid into the state treasury and credited to the general fund.
Sec. 639. RCW 90.76.080 and 1989 c 346 s 9 are each amended to read as follows:
(1) Except as provided in sections 607 through 609 and 617 of this act, a person who fails to notify the department pursuant to tank notification requirements or who submits false information is subject to a civil penalty not to exceed five thousand dollars per violation.
(2) Except as provided in sections 607 through 609 and 617 of this act, a person who violates this chapter is subject to a civil penalty not to exceed five thousand dollars for each tank per day of violation.
PART VII
RULES REVIEW
NEW SECTION. Sec. 701. A new section is added to chapter 34.05 RCW under the subchapter heading Part III to read as follows:
(1) Not later than June 30th of each year, each agency shall submit to the code reviser, according to procedures and time lines established by the code reviser, rules that it determines should be repealed by the expedited repeal procedures provided for in this section. An agency shall file a copy of a preproposal notice of inquiry, as provided in RCW 34.05.310(1), that identifies the rule as one that is proposed for expedited repeal.
(2) An agency may propose the expedited repeal of rules meeting one or more of the following criteria:
(a) The statute on which the rule is based has been repealed and has not been replaced by another statute providing statutory authority for the rule;
(b) The statute on which the rule is based has been declared unconstitutional by a court with jurisdiction, there is a final judgment, and no statute has been enacted to replace the unconstitutional statute;
(c) The rule is no longer necessary because of changed circumstances; or
(d) Other rules of the agency or of another agency govern the same activity as the rule, making the rule redundant.
(3) The agency shall also send a copy of the preproposal notice of inquiry to any person who has requested notification of copies of proposals for the expedited repeal of rules or of agency rule making. The preproposal notice of inquiry shall include a statement that any person who objects to the repeal of the rule must file a written objection to the repeal within thirty days after the preproposal notice of inquiry is published. The notice of inquiry shall also include an explanation of the reasons the agency believes the expedited repeal of the rule is appropriate.
(4) The code reviser shall publish all rules proposed for expedited repeal in a separate section of a regular edition of the Washington state register or in a special edition of the Washington state register. The publication shall be not later than July 31st of each year, or in the first register published after that date.
(5) Any person may file a written objection to the expedited repeal of a rule. The notice shall be filed with the agency rules coordinator within thirty days after the notice of inquiry has been published in the Washington state register. The written objection need not state any reason for objecting to the expedited repeal of the rule.
(6) If no written objections to the expedited repeal of a rule are filed with the agency within thirty days after the preproposal notice of inquiry is published, the agency may enter an order repealing the rule without further notice or an opportunity for a public hearing. The order shall be published in the manner required by this chapter for any other order of the agency adopting, amending, or repealing a rule. If a written objection to the expedited repeal of the rule is filed with the agency within thirty days after the notice of inquiry has been published, the preproposal notice of inquiry published pursuant to this section shall be considered a preproposal notice of inquiry for the purposes of RCW 34.05.310(1) and the agency may initiate rule adoption proceedings in accordance with the provisions of this chapter.
Sec. 702. RCW 34.05.230 and 1988 c 288 s 203 are each amended to read as follows:
(1) If the adoption of rules is not feasible and practicable, an agency is encouraged to advise the public of its current opinions, approaches, and likely courses of action by means of interpretive or policy statements. Current interpretive and policy statements are advisory only. An agency is encouraged to convert long-standing interpretive and policy statements into rules.
(2) A person may petition an agency requesting the conversion of interpretive and policy statements into rules. Upon submission, the agency shall notify the joint administrative rules review committee of the petition. Within sixty days after submission of a petition, the agency shall either deny the petition in writing, stating its reasons for the denial, or initiate rule-making proceedings in accordance with this chapter.
(3) Each agency shall maintain a roster of interested persons, consisting of persons who have requested in writing to be notified of all interpretive and policy statements issued by that agency. Each agency shall update the roster once each year and eliminate persons who do not indicate a desire to continue on the roster. Whenever an agency issues an interpretive or policy statement, it shall send a copy of the statement to each person listed on the roster. The agency may charge a nominal fee to the interested person for this service.
Sec. 703. RCW 34.05.330 and 1988 c 288 s 305 are each amended to read as follows:
(1) Any person may petition an agency requesting the adoption, amendment, or repeal of any rule. ((Each agency may)) The office of financial management shall prescribe by rule the ((form)) format for such petitions and the procedure for their submission, consideration, and disposition and provide a standard form that may be used to petition any agency. Within sixty days after submission of a petition, the agency shall (((1))) either (a) deny the petition in writing, stating (i) its reasons for the denial, specifically addressing the concerns raised by the petitioner, and, where appropriate, (ii) the alternative means by which it will address the concerns raised by the petitioner, or (((2))) (b) initiate rule-making proceedings in accordance with this chapter.
(2) If an agency denies a petition to repeal or amend a rule submitted under subsection (1) of this section, the petitioner, within thirty days of the denial, may appeal the denial to the governor. The governor shall immediately file notice of the appeal with the code reviser for publication in the Washington state register. Within forty-five days after receiving the appeal, the governor shall either (a) deny the petition in writing, stating (i) his or her reasons for the denial, specifically addressing the concerns raised by the petitioner, and, (ii) where appropriate, the alternative means by which he or she will address the concerns raised by the petitioner; (b) for agencies listed in RCW 43.17.010, direct the agency to initiate rule-making proceedings in accordance with this chapter; or (c) for agencies not listed in RCW 43.17.010, recommend that the agency initiate rule-making proceedings in accordance with this chapter. The governor's response to the appeal shall be published in the Washington state register and copies shall be submitted to the chief clerk of the house of representatives and the secretary of the senate.
(3) In petitioning for repeal or amendment of a rule under this section, a person is encouraged to address, among other concerns:
(a) Whether the rule is authorized;
(b) Whether the rule is needed;
(c) Whether the rule conflicts with or duplicates other federal, state, or local laws;
(d) Whether alternatives to the rule exist that will serve the same purpose at less cost;
(e) Whether the rule applies differently to public and private entities;
(f) Whether the rule serves the purposes for which it was adopted;
(g) Whether the costs imposed by the rule are unreasonable;
(h) Whether the rule is clearly and simply stated; and
(i) Whether the rule is different than a federal law applicable to the same activity or subject matter without adequate justification.
(4) The business assistance center and the office of financial management shall coordinate efforts among agencies to inform the public about the existence of this rules review process.
(5) The office of financial management shall initiate the rule making required by subsection (1) of this section by September 1, 1995.
NEW SECTION. Sec. 704. A new section is added to chapter 1.08 RCW to read as follows:
(1) The code reviser shall compile and publish on a quarterly basis a report on state agency rule-making activity. The report shall summarize the following information by agency and by type of activity for new, amended, and repealed rules adopted by state agencies pursuant to chapter 34.05 RCW:
(a) The number adopted, proposed for adoption, and withdrawn;
(b) The number adopted as emergency rules;
(c) The number adopted in order to comply with federal statute, with federal rules or standards, and with recently enacted state statutes;
(d) The number adopted at the request of a nongovernmental entity;
(e) The number adopted on an agency's own initiative;
(f) The number adopted in order to clarify, streamline, or reform agency procedures;
(g) The number of petitions for review of rules received by agencies;
(h) The number of rules appealed to superior court; and
(i) The number adopted using negotiated rule making, pilot rule making, or other alternative rule-making mechanisms.
(2) For purposes of the report required by this section, each Washington State Register filing section shall be considered as a separate rule. The code reviser may adopt rules necessary to implement this section. To the maximum extent practicable, the code reviser shall use information supplied on forms provided by state agencies pursuant to chapter 34.05 RCW to prepare the report required by this section.
PART VIII
JUDICIAL REVIEW
Sec. 801. RCW 34.05.370 and 1994 c 249 s 2 are each amended to read as follows:
(1) Each agency shall maintain an official rule-making file for each rule that it (a) proposes by publication in the state register, or (b) adopts. The file and materials incorporated by reference shall be available for public inspection.
(2) The agency rule-making file shall contain all of the following:
(a) Copies of all publications in the state register with respect to the rule or the proceeding upon which the rule is based;
(b) Copies of any portions of the agency's public rule-making docket containing entries relating to the rule or the proceeding on which the rule is based;
(c) All written petitions, requests, submissions, and comments received by the agency and all other written material regarded by the agency as important to adoption of the rule or the proceeding on which the rule is based;
(d) Any official transcript of oral presentations made in the proceeding on which the rule is based or, if not transcribed, any tape recording or stenographic record of them, and any memorandum prepared by a presiding official summarizing the contents of those presentations;
(e) ((The concise explanatory statement required by RCW 34.05.355;
(f))) All petitions for exceptions to, amendment of, or repeal or suspension of, the rule;
(((g))) (f) Citations to data, factual information, studies, or reports on which the agency relies in the adoption of the rule, indicating where such data, factual information, studies, or reports are available for review by the public, but this subsection (2)(f) does not require the agency to include in the rule-making file any data, factual information, studies, or reports gathered pursuant to chapter 19.85 RCW that can be identified to a particular business;
(((h))) (g) The ((written summary and response)) concise explanatory statement required by RCW 34.05.325(6); and
(((i))) (h) Any other material placed in the file by the agency.
(3) Internal agency documents are exempt from inclusion in the rule-making file under subsection (2) of this section to the extent they constitute preliminary drafts, notes, recommendations, and intra-agency memoranda in which opinions are expressed or policies formulated or recommended, except that a specific document is not exempt from inclusion when it is publicly cited by an agency in connection with its decision.
(4) Upon judicial review, the file required by this section constitutes the official agency rule-making file with respect to that rule. Unless otherwise required by another provision of law, the official agency rule-making file need not be the exclusive basis for agency action on that rule.
Sec. 802. RCW 34.05.570 and 1989 c 175 s 27 are each amended to read as follows:
(1) Generally. Except to the extent that this chapter or another statute provides otherwise:
(a) The burden of demonstrating the invalidity of agency action is on the party asserting invalidity;
(b) The validity of agency action shall be determined in accordance with the standards of review provided in this section, as applied to the agency action at the time it was taken;
(c) The court shall make a separate and distinct ruling on each material issue on which the court's decision is based; and
(d) The court shall grant relief only if it determines that a person seeking judicial relief has been substantially prejudiced by the action complained of.
(2) Review of rules. (a) A rule may be reviewed by petition for declaratory judgment filed pursuant to this subsection or in the context of any other review proceeding under this section. In an action challenging the validity of a rule, the agency shall be made a party to the proceeding.
(b) The validity of any rule may be determined upon petition for a declaratory judgment addressed to the superior court of Thurston county, when it appears that the rule, or its threatened application, interferes with or impairs or immediately threatens to interfere with or impair the legal rights or privileges of the petitioner. The declaratory judgment order may be entered whether or not the petitioner has first requested the agency to pass upon the validity of the rule in question.
(c) In a proceeding involving review of a rule, the court shall declare the rule invalid only if it finds that: ((it)) The rule violates constitutional provisions((,)); the rule exceeds the statutory authority of the agency((,)); the rule was adopted without compliance with statutory rule-making procedures((, or could not conceivably have been the product of a rational decision-maker)); or the rule is arbitrary and capricious.
(3) Review of agency orders in adjudicative proceedings. The court shall grant relief from an agency order in an adjudicative proceeding only if it determines that:
(a) The order, or the statute or rule on which the order is based, is in violation of constitutional provisions on its face or as applied;
(b) The order is outside the statutory authority or jurisdiction of the agency conferred by any provision of law;
(c) The agency has engaged in unlawful procedure or decision-making process, or has failed to follow a prescribed procedure;
(d) The agency has erroneously interpreted or applied the law;
(e) The order is not supported by evidence that is substantial when viewed in light of the whole record before the court, which includes the agency record for judicial review, supplemented by any additional evidence received by the court under this chapter;
(f) The agency has not decided all issues requiring resolution by the agency;
(g) A motion for disqualification under RCW 34.05.425 or 34.12.050 was made and was improperly denied or, if no motion was made, facts are shown to support the grant of such a motion that were not known and were not reasonably discoverable by the challenging party at the appropriate time for making such a motion;
(h) The order is inconsistent with a rule of the agency unless the agency explains the inconsistency by stating facts and reasons to demonstrate a rational basis for inconsistency; or
(i) The order is arbitrary or capricious.
(4) Review of other agency action.
(a) All agency action not reviewable under subsection (2) or (3) of this section shall be reviewed under this subsection.
(b) A person whose rights are violated by an agency's failure to perform a duty that is required by law to be performed may file a petition for review pursuant to RCW 34.05.514, seeking an order pursuant to this subsection requiring performance. Within twenty days after service of the petition for review, the agency shall file and serve an answer to the petition, made in the same manner as an answer to a complaint in a civil action. The court may hear evidence, pursuant to RCW 34.05.562, on material issues of fact raised by the petition and answer.
(c) Relief for persons aggrieved by the performance of an agency action, including the exercise of discretion, or an action under (b) of this subsection can be granted only if the court determines that the action is:
(i) Unconstitutional;
(ii) Outside the statutory authority of the agency or the authority conferred by a provision of law;
(iii) Arbitrary or capricious; or
(iv) Taken by persons who were not properly constituted as agency officials lawfully entitled to take such action.
Sec. 803. RCW 34.05.534 and 1988 c 288 s 507 are each amended to read as follows:
A person may file a petition for judicial review under this chapter only after exhausting all administrative remedies available within the agency whose action is being challenged, or available within any other agency authorized to exercise administrative review, except:
(1) A petitioner for judicial review of a rule need not have participated in the rule-making proceeding upon which that rule is based, ((or)) have petitioned for its amendment or repeal, or have appealed a petition for amendment or repeal to the governor;
(2) A petitioner for judicial review need not exhaust administrative remedies to the extent that this chapter or any other statute states that exhaustion is not required; or
(3) The court may relieve a petitioner of the requirement to exhaust any or all administrative remedies upon a showing that:
(a) The remedies would be patently inadequate;
(b) The exhaustion of remedies would be futile; or
(c) The grave irreparable harm that would result from having to exhaust administrative remedies would clearly outweigh the public policy requiring exhaustion of administrative remedies.
PART IX
EQUAL ACCESS TO JUSTICE
NEW SECTION. Sec. 901. The legislature finds that certain individuals, smaller partnerships, smaller corporations, and other organizations may be deterred from seeking review of or defending against an unreasonable agency action because of the expense involved in securing the vindication of their rights in administrative proceedings. The legislature further finds that because of the greater resources and expertise of the state of Washington, individuals, smaller partnerships, smaller corporations, and other organizations are often deterred from seeking review of or defending against state agency actions because of the costs for attorneys, expert witnesses, and other costs. The legislature therefore adopts this equal access to justice act to ensure that these parties have a greater opportunity to defend themselves from inappropriate state agency actions and to protect their rights.
NEW SECTION. Sec. 902. A new section is added to chapter 4.84 RCW to read as follows:
Unless the context clearly requires otherwise, the definitions in this section apply throughout sections 902 through 904 of this act.
(1) "Agency" means any state board, commission, department, institution of higher education, or officer, authorized by law to make rules or to conduct adjudicative proceedings, except those in the legislative or judicial branches, the governor, or the attorney general except to the extent otherwise required by law.
(2) "Agency action" means agency action as defined by chapter 34.05 RCW.
(3) "Fees and other expenses" includes the reasonable expenses of expert witnesses, the reasonable cost of a study, analysis, engineering report, test, or project that is found by the court to be necessary for the preparation of the party's case, and reasonable attorneys' fees. Reasonable attorneys' fees shall be based on the prevailing market rates for the kind and quality of services furnished, except that (a) no expert witness shall be compensated at a rate in excess of the highest rates of compensation for expert witnesses paid by the state of Washington, and (b) attorneys' fees shall not be awarded in excess of one hundred fifty dollars per hour unless the court determines that an increase in the cost of living or a special factor, such as the limited availability of qualified attorneys for the proceedings involved, justifies a higher fee.
(4) "Judicial review" means a judicial review as defined by chapter 34.05 RCW.
(5) "Qualified party" means (a) an individual whose net worth did not exceed one million dollars at the time the initial petition for judicial review was filed or (b) a sole owner of an unincorporated business, or a partnership, corporation, association, or organization whose net worth did not exceed five million dollars at the time the initial petition for judicial review was filed, except that an organization described in section 501(c)(3) of the federal internal revenue code of 1954 as exempt from taxation under section 501(a) of the code and a cooperative association as defined in section 15(a) of the agricultural marketing act (12 U.S.C. 1141J(a)), may be a party regardless of the net worth of such organization or cooperative association.
NEW SECTION. Sec. 903. A new section is added to chapter 4.84 RCW to read as follows:
(1) Except as otherwise specifically provided by statute, a court shall award a qualified party that prevails in a judicial review of an agency action fees and other expenses, including reasonable attorneys' fees, unless the court finds that the agency action was substantially justified or that circumstances make an award unjust. A qualified party shall be considered to have prevailed if the qualified party obtained relief on a significant issue that achieves some benefit that the qualified party sought.
(2) The amount awarded a qualified party under subsection (1) of this section shall not exceed twenty-five thousand dollars. Subsection (1) of this section shall not apply unless all parties challenging the agency action are qualified parties. If two or more qualified parties join in an action, the award in total shall not exceed twenty-five thousand dollars. The court, in its discretion, may reduce the amount to be awarded pursuant to subsection (1) of this section, or deny any award, to the extent that a qualified party during the course of the proceedings engaged in conduct that unduly or unreasonably protracted the final resolution of the matter in controversy.
NEW SECTION. Sec. 904. A new section is added to chapter 4.84 RCW to read as follows:
Fees and other expenses awarded under sections 902 and 903 of this act shall be paid by the agency over which the party prevails from operating funds appropriated to the agency within sixty days. Agencies paying fees and other expenses pursuant to sections 902 and 903 of this act shall report all payments to the office of financial management within five days of paying the fees and other expenses. Fees and other expenses awarded by the court shall be subject to the provisions of chapter 39.76 RCW and shall be deemed payable on the date the court announces the award.
NEW SECTION. Sec. 905. A new section is added to chapter 43.88 RCW to read as follows:
The office of financial management shall report annually to the legislature on the amount of fees and other expenses awarded during the preceding fiscal year pursuant to sections 902 through 904 of this act. The report shall describe the number, nature, and amount of the awards, the claims involved in the controversy, and other relevant information that may aid the legislature in evaluating the scope and impact of the awards.
PART X
BUSINESS LICENSE INFORMATION
NEW SECTION. Sec. 1001. The master license system of the department of licensing is a proven, progressive program for one-stop state licensing. This flexible system should be expanded into a state-wide shared data base to facilitate combined licensing processes at local, state, and federal levels as a benefit to the business community through improved customer service.
In order to achieve this goal the department of licensing should expand the license information management system, offered by the master license system, to include local and federal licensing requirements, making this information readily accessible at appropriate locations throughout the state. In addition, the department should develop a pilot program expanding the capabilities of the master licensing system to local and federal levels in an efficient manner; and provide access to the expanded master licensing system for all jurisdictions within the state of Washington.
NEW SECTION. Sec. 1002. (1) The department shall solicit advice and recommendations for planning and establishing policy for a combined licensing pilot project and license information management system. Advice and assistance shall be solicited from:
(a) The business assistance center;
(b) The office of the secretary of state;
(c) The department of revenue;
(d) The department of labor and industries;
(e) The employment security department;
(f) The Washington state association of counties;
(g) The association of Washington cities;
(h) The department of information services;
(i) The small business improvement council; and
(j) The cities chosen under section 1005 of this act.
(2) The department may create ad hoc advisory committees for purposes of subsection (1) of this section.
(3) This section shall expire July 1, 1997.
NEW SECTION. Sec. 1003. By December 31, 1995, the department of licensing, with advice and recommendations provided in section 1002 of this act, shall develop a plan for the state-wide license information management system. This plan shall include:
(1) The scope and phases of the project, listing areas of responsibility for each phase;
(2) Analysis of the costs and benefits, as well as funding sources, staffing levels, and technological issues involved in completing the project; and
(3) A computer prototype for demonstration of the new license information system to interested jurisdictions.
NEW SECTION. Sec. 1004. By December 31, 1995, the department of licensing, with advice and recommendations provided in section 1002 of this act, shall develop a plan for a pilot combined licensing program. The plan shall include:
(1) The scope and phases of the project, listing areas of responsibility for each phase;
(2) Analysis of the costs and benefits, as well as funding sources, staffing levels, and technological issues involved in completing the project;
(3) The use of the state unified business identifier as the key number for identifying persons and businesses, for licensing purposes, throughout local, state and, if appropriate, federal levels of government;
(4) Steps leading to the expansion of the department's master license automated system, to be used for combined licensing processes at selected local service jurisdictions;
(5) Development of common technology for information dissemination, access, and delivery at appropriate service locations through the master license system, including remote field input of master business application information;
(6) Adoption of the state's master business application to become the standard for all registration or licensing applications used at local and state levels, and federal levels where appropriate; and
(7) Necessary training for staff at service locations.
NEW SECTION. Sec. 1005. By December 31, 1996, the department of licensing shall:
(1) Expand the license information management system, in order to provide on-line local, state, and federal business registration and licensing requirements;
(2) Include specific licensing requirements for local jurisdictions in the license information packet;
(3) Provide the capability to distribute the information packets at the appropriate service locations;
(4) Provide the ability for local jurisdictions to access, store, and update the license requirements data of their own jurisdiction; and
(5) Provide training to all organizations providing services using the master license information management system.
NEW SECTION. Sec. 1006. A new section is added to chapter 19.02 RCW to read as follows:
(1) By June 30, 1997, the department shall have a pilot combined licensing project fully operational in at least two cities within the state of Washington, with at least one city west of the Cascade mountains and at least one city east of the Cascade mountains.
(2) By January 31, 1997, the department shall make an interim report to the legislature on the progress of the pilot combined licensing project.
(3) By January 31, 1998, the department shall have evaluated the pilot combined licensing project and reported to the legislature with a plan for transition of the pilot project into an ongoing program. The transition plan shall include cost, funding sources, and staffing needs for the ongoing program.
(4) Upon approval and continued funding of the transition plan by the legislature under this section, the master license system shall implement a transition from the pilot program to the ongoing program.
Sec. 1007. RCW 19.02.075 and 1992 c 107 s 2 are each amended to read as follows:
(1) ((Beginning June 1, 1992,)) The department shall collect a fee of fifteen dollars on each master application ((and five dollars on each license information packet. From June 1, 1992, to June 30, 1992, twelve dollars of the master application fee shall be deposited in the general fund and three dollars deposited in the master license fund. Thereafter,)). The entire master application fee shall be deposited in the master license fund. ((License information packet fees shall be deposited in the general fund.))
(2) ((Beginning July 1, 1992,)) The department shall collect a fee of nine dollars on each renewal application. Renewal application fees shall be deposited in the master license fund.
PART XI
MISCELLANEOUS
NEW SECTION. Sec. 1101. Part headings as used in this act do not constitute any part of the law.
NEW SECTION. Sec. 1102. Sections 201, 301 through 305, 401 through 405, and 801 of this act shall apply to all rule making for which a statement of proposed rule making under RCW 34.05.320 is filed after the effective date of this section.
NEW SECTION. Sec. 1103. Sections 601 through 615, 617, and 619 through 621 of this act shall constitute a new chapter in Title 43 RCW.
NEW SECTION. Sec. 1104. If specific funding for the purposes of sections 704 and 1001 through 1007 of this act, referencing this act by bill and section numbers, is not provided by June 30, 1995, in the omnibus appropriations act, sections 704 and 1001 through 1007 of this act shall be null and void.
NEW SECTION. Sec. 1105. 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."
On page 1, line 1 of the title, after "reform;" strike the remainder of the title and insert "amending RCW 43.21A.080, 43.70.040, 82.01.060, 46.01.110, 50.12.040, 76.09.040, 77.04.090, 48.02.060, 48.30.010, 48.44.050, 48.46.200, 34.05.310, 34.05.320, 34.05.313, 34.05.325, 19.85.030, 19.85.040, 34.05.660, 42.40.010, 42.40.020, 42.40.030, 18.104.155, 49.17.180, 70.94.431, 70.105.080, 70.132.050, 70.138.040, 86.16.081, 90.03.600, 90.48.144, 90.58.210, 90.58.560, 90.76.080, 34.05.230, 34.05.330, 34.05.370, 34.05.570, 34.05.534, and 19.02.075; adding new sections to chapter 43.12 RCW; adding a new section to chapter 43.20A RCW; adding new sections to chapter 43.23 RCW; adding new sections to chapter 43.24 RCW; adding new sections to chapter 43.22 RCW; adding a new section to chapter 70.94 RCW; adding new sections to chapter 34.05 RCW; adding new sections to chapter 19.85 RCW; adding a new section to chapter 43.30 RCW; adding a new section to chapter 43.70 RCW; adding a new section to chapter 43.300 RCW; adding a new section to chapter 1.08 RCW; adding new sections to chapter 4.84 RCW; adding a new section to chapter 43.88 RCW; adding a new section to chapter 19.02 RCW; adding a new chapter to Title 43 RCW; creating new sections; repealing RCW 34.05.355 and 19.85.060; and prescribing penalties."
and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
MOTION
Representative Reams moved that the House concur in the Senate amendments to Engrossed Substitute House Bill No. 1010 and pass the bill as amended by the Senate. The motion was carried.
FINAL PASSAGE OF HOUSE BILL AS SENATE AMENDED
The Speaker stated the question before the House to be final passage of Engrossed Substitute House Bill No. 1010 as amended by the Senate.
Representatives Reams, Rust, Patterson, Conway and Clements spoke in favor of passage of the bill.
Representative Chopp spoke against passage of the bill.
Representative Reams yielded to a question by Representative Chandler.
Representative Chandler: The U. S. Environmental Protection Agency is developing an unprecedented volume of rules to implement the federal clean air act. Washington also has a complex state clean air act, with provisions which may be construed as authority to develop regulations more stringent than, or in advance of, similar federal requirements. Is it the intention of the procedures required by Section 113 to provide a respite from state rule making, so that deferral requirements can be implemented and evaluated before the state imposes burdens sooner than, or more stringent than, the federal regulations?
Representative Reams: Yes. It is the intent of this Section that the Department of Ecology may adopt or amend an air quality regulation that imposes burdens sooner than, or more stringent than, similar federal requirements only after complying with the analysis outlined in this Section.
Representative Reams yielded to a question by Representative Hickel.
Representative Hickel: The striking amendment replaces the existing standard for Judicial review of agency rules with the arbitrary and capricious standard. What is your intent in using this standard?
Representative Chandler: It is our intent in replacing the existing standard with the arbitrary and capricious standard to affirm the direction taking by the majority of our State's Supreme Court in 1992 decision Neha Bay Chambers of Commerce verses the Department of Fisheries, that is that when reviewing an agency rule, although a court should not substitute it's judgment for that of the agency. It should engage in a thorough probing, in depth review to determine whether the agency reached its result through a process of reason and took a hard look at the rule before adopting it.
ROLL CALL
The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 1010 as amended by the Senate, and the bill passed the House by the following vote: Yeas - 89, Nays - 8, Absent - 0, Excused - 1.
Voting yea: Representatives Appelwick, Backlund, Ballasiotes, Basich, Beeksma, Blanton, Boldt, Brown, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chappell, Clements, Conway, Cooke, Costa, Crouse, Dellwo, Delvin, Dickerson, Dyer, Ebersole, Elliot, Fisher, G., Foreman, Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Jacobsen, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mastin, McMahan, McMorris, Mielke, Mitchell, Morris, Mulliken, Ogden, Patterson, Pelesky, Pennington, Poulsen, Quall, Radcliff, Reams, Robertson, Romero, Rust, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Sommers, Sterk, Stevens, Talcott, Thibaudeau, Thomas, B., Thomas, L., Thompson, Valle, Van Luven, Wolfe and Mr. Speaker - 89.
Voting nay: Representatives Chopp, Cody, Cole, Fisher, R., Mason, Regala, Tokuda and Veloria - 8.
Excused: Representative Benton - 1.
Engrossed Substitute House Bill No. 1010, as amended by the Senate, having received the constitutional majority, was declared passed.
There being no objection, the House reverted to the fourth order of business.
INTRODUCTIONS AND FIRST READING
HB 2095 by Representatives Dyer and Poulsen
AN ACT Relating to somatic education; amending RCW 18.108.005, 18.108.010, 18.108.020, 18.108.030, 18.108.040, 18.108.060, 18.108.070, 18.108.073, 18.108.095, and 18.74.010; reenacting and amending RCW 18.130.040; adding a new section to chapter 18.108 RCW; and creating a new section.
Referred to Committee on Health Care.
HB 2096 by Representatives Pelesky, Quall, L. Thomas, Hymes, Smith, Carrell, McMahan, Elliot, Brumsickle, Talcott, Casada, Reams, D. Schmidt, Clements, Basich, Sherstad, Campbell, Blanton, Huff, Backlund, Hatfield, Kremen, Honeyford, Mulliken, Benton and Kessler
AN ACT Relating to teachers' early retirement benefits; reenacting and amending RCW 28A.400.212; creating new sections; and declaring an emergency.
Referred to Committee on Education.
HJM 4032 by Representatives Morris, Pennington, Dickerson, Van Luven, Sheldon, Boldt, Mason, Carrell, B. Thomas, Cooke, Honeyford, Mulliken, Benton, Kessler, Kremen, Elliot, Backlund, D. Schmidt, Koster and Romero
Petitioning Congress to reinstate income tax deduction for state sales tax.
Referred to Committee on Finance.
HCR 4408 by Representative Foreman
Extending the cut-off for certain bills.
E2SSB 6062 by Senate Committee on Ways & Means (originally sponsored by Senators Quigley, Moyer, Fairley, Wood, Wojahn and Winsley)
Making welfare work.
There being no objection, the bills, memorial and resolution listed on today's introduction sheet under the fourth order of business were referred to the committees so designated with the exception of Engrossed Second Substitute Senate Bill No. 6062.
There being no objection, the rules were suspended and Engrossed Second Substitute Senate Bill No. 6062 was advanced to the second reading calendar and held.
MESSAGE FROM THE SENATE
April 18, 1995
Mr. Speaker:
The President has signed:
ENGROSSED SUBSTITUTE HOUSE BILL NO. 1046,
and the same is herewith transmitted.
Marty Brown, Secretary
SIGNED BY THE SPEAKER
The Speaker announced he was signing:
ENGROSSED SENATE BILL NO. 5019,
SECOND SUBSTITUTE SENATE BILL NO. 5088,
SUBSTITUTE SENATE BILL NO. 5182,
SUBSTITUTE SENATE BILL NO. 5183,
ENGROSSED SUBSTITUTE SENATE BILL NO. 5190,
SUBSTITUTE SENATE BILL NO. 5209,
ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5342,
SUBSTITUTE SENATE BILL NO. 5402,
SUBSTITUTE SENATE BILL NO. 5403,
There being no objection, the House advanced to the eleventh order of business.
MOTION
There being no objection, the House adjourned until 9:00 a.m., Wednesday, April 19, 1995.
CLYDE BALLARD, Speaker
TIMOTHY A. MARTIN, Chief Clerk